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news from San Fran Business Times and it is not rosy about Wells and their "HQ" in San Fran.   I still think they need to announce the new HQ will be in Charlotte which is less than 2 hours to NYC by plane and most of their deposits and customers are east of the Mississippi now too.   They are worried in Cali and they should be most of these scandals originated there.  Not to mention the cost of doing business here in NC is a fraction of that in Cali and most non customer facing jobs should move out of the state.  

""San Francisco Business Times
Feb 11, 2020, 2:46pm PST Updated Feb 11, 2020, 3:19pm PST
Wells Fargo’s restructuring Tuesday included the hiring of another JPMorgan Chase executive who, like CEO Charlie Scharf, will remain based in New York.  Wells said Mike Weinbach will join the bank as CEO of consumer lending in early May.    The hiring occurred as the bank announced it is splitting into five parts, each with its own CEO reporting to Scharf. Two of the divisional CEOs are based in New York, one in Charlotte, North Carolina, and one in Portland, Oregon.   None of the divisional CEOs are based in San Francisco, although one of the CEO slots, overseeing wealth management and investment management, is still open. It will be filled by a New York-based divisional CEO pending a permanent hire.  When I asked Wells Tuesday who in Wells Fargo’s C-suite is still based in San Francisco, the bank provided a list: John Shrewsberry, chief financial officer; David Galloreese, head of human resources; Amanda Norton, chief risk officer; and Julie Scammahorn, chief auditor. All four report to Scharf, who previously led San Francisco-based Visa, until he stepped down in 2016, saying he could no longer spend enough time in San Francisco “to do the job effectively.” His family had remained in New York while he helmed Visa.   One longtime San Francisco-based member of the senior leadership team, Avid Modjtabai, is scheduled to retire in March. She is Wells Fargo’s senior executive vice president and head of the bank’s payments, virtual solutions and innovation group. In announcing Modjtabai’s impending retirement last year, Wells said Ray Fischer was joining the bank in November to lead cards, retail and merchant services. He is based in Wilmington, Delaware.   When asked for comment on whether the bank’s headquarters is gradually stepping away from its historic hometown, a Wells Fargo spokesman said, “Wells Fargo will continue to be headquartered in San Francisco. The company has a nationwide footprint, a nationwide customer base and a team of 260,000 throughout the country.”   Wells Fargo’s headquarters location is a concern as several other San Francisco companies, including Charles Schwab Corp. and McKesson, have recently moved their headquarters out of California or announced plans to do so. Various smaller companies have done likewise.  But if Wells Fargo were eventually to move its headquarters out of San Francisco, the optics would be even worse than those departures. The bank is the fourth-largest employer in the Bay Area, with about 13,483 employees, according to Business Times research. In corporate philanthropy, Wells ranked fifth, based on $22.4 million in cash contributions to Bay Area nonprofits.   The Bay Area would continue to be a major market for the bank — as it is for Bank of America, which moved its headquarters to Charlotte in 1998. But the region could lose the civic leadership that is often focused in a company’s headquarters city. Plus, Wells Fargo roots run deep in California: It was founded in 1852 when founders Henry Wells and William Fargo failed to convince their fellow board members at New York-based American Express to expand to the West.""

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Well very interesting what I saw in today's  San Francisco Business Times about Wells Fargo and their HQ title of article      WHY A WELLS FARGO HQ RELOCATION OUT OF S.F.  COULD BE A TIMELY MOVE

I suppose there are numerous examples of this economic development approach working in the short-term, but I've never been comfortable with a city that on one hand aspires to be world-class, also pitc

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8 minutes ago, KJHburg said:

news from San Fran Business Times and it is not rosy about Wells and their "HQ" in San Fran.   I still think they need to announce the new HQ will be in Charlotte which is less than 2 hours to NYC by plane and most of their deposits and customers are east of the Mississippi now too.   They are worried in Cali and they should be most of these scandals originated there.  Not to mention the cost of doing business here in NC is a fraction of that in Cali and most non customer facing jobs should move out of the state.  

""San Francisco Business Times
Feb 11, 2020, 2:46pm PST Updated Feb 11, 2020, 3:19pm PST
Wells Fargo’s restructuring Tuesday included the hiring of another JPMorgan Chase executive who, like CEO Charlie Scharf, will remain based in New York.  Wells said Mike Weinbach will join the bank as CEO of consumer lending in early May....

I think that Goldman Sachs will acquire Wells since they want to diversify.  While any combined entity would be based in NY, Charlotte would get a lot of jobs due to the regional proximity to NY.

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This announcement just reduces the power of the most powerful Wells Fargo exec based in Charlotte. Mary Mack loses leadership of the revenue producing consumer lending businesses and her scope reduces to branch operations and deposits gathering. Charlotte didn't really gain anything in the re-structuring. 

Edited by CLT2014
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3 minutes ago, CLT2014 said:

This announcement just reduces the power of the most powerful Wells Fargo exec based in Charlotte. Mary Mack loses leadership of the revenue producing consumer lending businesses and her scope reduces to branch operations and deposits gathering. Charlotte didn't really gain anything in the re-structuring. 

So we maybe didn't gain a headquarters so much as lost a "hubquarters"?  Or now we're one of several hubquarters where before we were it?

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8 hours ago, SydneyCarton said:

This list is flawed.  Charlotte should replace SF.

https://www.thefinancialstreet.com/top-20-financial-cities-2019/

 

Finance isn't just for banking. Think stocks, investments, futures, venture capital, etc. San Francisco has that in spades vs. Charlotte, mainly bc that city has long been a major business center. I'm more interested to see LA on this list, and to see Chicago so low. Chicago is a major agricultural finance center -- see the Chicago Board of Trade. 

I believe Charlotte is growing in this respect, especially if some of these larger investment management companies (Vanguard, etc) continue to eye the city. 

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6 minutes ago, Rufus said:

Finance isn't just for banking. Think stocks, investments, futures, venture capital, etc. San Francisco has that in spades vs. Charlotte, mainly bc that city has long been a major business center. I'm more interested to see LA on this list, and to see Chicago so low. Chicago is a major agricultural finance center -- see the Chicago Board of Trade. 

I believe Charlotte is growing in this respect, especially if some of these larger investment management companies (Vanguard, etc) continue to eye the city. 

I know.  I’m biased.

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the number of bank branches is going DOWN in Charlotte from a JLL report.

Metro market 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Number Percent
Atlanta 1,399 1,383 1,361 1,337 1,313 1,294 1,284 1,225 1,203 1,173 (30) (2.5%)
Austin 470 466 468 476 476 467 467 448 438 442 4 0.9%
Baltimore 833 822 813 802 770 747 728 711 682 667 (15) (2.2%)
Boston 1,517 1,522 1,516 1,526 1,540 1,516 1,527 1,523 1,516 1,508 (8) (0.5%)
Bridgeport, CT 416 411 409 399 388 382 368 360 353 354 1 0.3%
Charlotte 579 581 573 562 550 549 543 534 520 506 (14) (2.7%)     Charlotte has 506 branches in 2019 vs. 579 in 2010 and will shrink further with the Truist branch consolidation 
Chicago 3,228 3,209 3,183 3,148 3,031 2,972 2,863 2,765 2,710 2,636 (74) (2.7%)
Cincinnati 813 808 803 788 771 764 754 740 718 699 (19) (2.6%)
Cleveland 702 722 731 720 707 691 679 642 638 621 (17) (2.7%)
Columbus 585 596 587 585 565 567 564 546 538 538 0 0.0%
Dallas–Fort Worth 1,812 1,740 1,731 1,738 1,729 1,718 1,711 1,672 1,659 1,615 (44) (2.7%)
Denver 733 719 715 694 684 670 657 650 647 634 (13) (2.0%)
Detroit 1,157 1,146 1,133 1,117 1,083 1,043 1,049 999 974 945 (29) (3.0%)
Hartford, CT 391 397 392 394 396 382 377 372 368 345 (23) (6.3%)
Houston 1,558 1,534 1,530 1,526 1,514 1,493 1,482 1,450 1,420 1,417 (3) (0.2%)
Indianapolis 639 640 636 610 585 575 553 546 534 522 (12) (2.2%)
Jacksonville 325 320 311 310 318 320 317 312 291 277 (14) (4.8%)
Kansas City 776 782 769 753 722 715 714 705 691 694 3 0.4%
Los Angeles 2,423 2,461 2,482 2,498 2,507 2,477 2,456 2,422 2,405 2,354 (51) (2.1%)
Miami 1,626 1,619 1,655 1,665 1,651 1,646 1,619 1,582 1,549 1,502 (47) (3.0%)
Milwaukee 604 585 577 578 554 550 552 511 490 484 (6) (1.2%)
Minneapolis–St. Paul 872 861 855 843 827 821 815 790 785 770 (15) (1.9%)
Nashville 590 589 593 598 602 595 598 591 578 573 (5) (0.9%)
New York–Newark 6,043 6,057 6,001 5,971 5,905 5,855 5,735 5,634 5,509 5,135 (374) (6.8%)
Orlando 618 611 612 601 584 580 570 546 535 522 (13) (2.4%)
Philadelphia 1,924 1,917 1,889 1,833 1,783 1,765 1,732 1,702 1,659 1,629 (30) (1.8%)
Phoenix 942 933 928 913 900 889 867 851 815 798 (17) (2.1%)
Pittsburgh 878 876 873 871 853 838 825 818 802 786 (16) (2.0%)
Portland, OR 572 580 590 583 563 557 546 536 521 509 (12) (2.3%)
Raleigh-Durham 441 443 439 426 424 424 423 416 405 408 3 0.7%
Richmond 373 369 362 360 345 350 347 325 317 302 (15) (4.7%)

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I had not seen this updated list of JPMorgan Chase bank branch locations in Charlotte from a CBJ article today.

""Two more local branches are set to open later this year. Those are in south Charlotte at Pineville-Matthews Road and Arboretum View, and in Cornelius at Catawba Avenue and West Jetton Road. Other branches are planned in Blakeney at Rea and Ardrey Kell roads; Huntersville at Sam Furr Road and Lindholm Drive; Charlotte at Park and East Woodlawn roads; and the University area at North Tryon Street and J.W. Clay Boulevard, according to filings with the Office of the Comptroller of the Currency. In February, JPMorgan Chase also filed a permit with the city's land development services for another branch in west Charlotte at 3053 Freedom Drive.""

https://www.bizjournals.com/charlotte/news/2020/03/26/jpmorgan-chase-us-bank-keep-eye-on-covid-19.html

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17 hours ago, KJHburg said:

I had not seen this updated list of JPMorgan Chase bank branch locations in Charlotte from a CBJ article today.

""Two more local branches are set to open later this year. Those are in south Charlotte at Pineville-Matthews Road and Arboretum View, and in Cornelius at Catawba Avenue and West Jetton Road. Other branches are planned in Blakeney at Rea and Ardrey Kell roads; Huntersville at Sam Furr Road and Lindholm Drive; Charlotte at Park and East Woodlawn roads; and the University area at North Tryon Street and J.W. Clay Boulevard, according to filings with the Office of the Comptroller of the Currency. In February, JPMorgan Chase also filed a permit with the city's land development services for another branch in west Charlotte at 3053 Freedom Drive.""

https://www.bizjournals.com/charlotte/news/2020/03/26/jpmorgan-chase-us-bank-keep-eye-on-covid-19.html

It sounds like they're going all out in Charlotte, I guess they didn't want everyone moving from up north switching to BofA or WF down here.

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12 minutes ago, Mgelbach said:

It sounds like they're going all out in Charlotte, I guess they didn't want everyone moving from up north switching to BofA or WF down here.

You have to go all out... or you might as well not do it at all. "Hi, come bank at Chase. We have 2 branches and 6 ATM's over the entire county. Any other ATM will cost you $2.5 + the ATM owners fee. YAY!" Hence if you have fee policies like that you have to have a comprehensive network to make it compelling to switch banks. The other alternative is you drop the fees or partner with a network like Allpoint. 

Edited by CLT2014
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1 hour ago, Blue_Devil said:

I heard Vanguard might move to Southend

This has been a rumor to varying degrees for a while now, I believe this is tied to the Econ Dev thread as well.

Wonder if they are the 2nd half of the Spectrum development or South End's new tallest across the street? Who knows with the pandemic but if they are serious and it's not Spec, I wonder if either could still start by the end of this year.

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5 hours ago, Blue_Devil said:

I heard Vanguard might move to Southend

I am just a simpleton as some say but I have heard the same thing but I am sure the market gyrations here of late have given them pause but they are really growing and their tech operation is huge here.  

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5 hours ago, DH17 said:

This has been a rumor to varying degrees for a while now, I believe this is tied to the Econ Dev thread as well.

Wonder if they are the 2nd half of the Spectrum development or South End's new tallest across the street? Who knows with the pandemic but if they are serious and it's not Spec, I wonder if either could still start by the end of this year.

Heard LoSo

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5 minutes ago, J-Rob said:

Didn't they already revise the LoSo Station plans to be taller?

https://beacondevelopment.com/properties/building/3852/loso-station

783975499_LoSoStation.png.4eae0e45de25c903e53899a2c80795c9.png

I think at that time it was speculative as to whether it would actually be taller or not, depending on the tenant. Now people are guessing that if a company Vanguard's size took that building they'd need the taller version.

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Interesting insight into office space needs and financial firms in the post pandemic world.  Basically there could be a lot less office space needed but having more people work from home than in the past.   This would have major implications for Charlotte since financial firms occupy approx. 50% of our office space.

https://www.nreionline.com/office/banks-not-returning-skyscrapers-anytime-soon-staley-says

My comments:  BofA Plaza will have about 300K sq ft of vacant office space in early 2021 when BofA's lease ends.   Perfect for US Bank and they could rename the tower and be much more prominent and leave the Truist Bank owned Truist Tower.    the current Ally Bank building on S Church will have approx. 150K sq ft available when they move to the new Ally Center.    Of course Duke will move to their new tower sell their old building on S Church (probably be demo'ed) but they lease most of 400 South Tryon so it will be interesting to see what happens there.  Lots of shuffling in the next 1-3 years but I think not as much construction other than that which is ongoing now this is my thoughts.    Constant and continued economic recruitment needs to continue to attract new financial firms and HQs which take up generous amounts of space.   

One thing about this article is they are interviewing and talking to banks and financial firms in the highest of high cost cities of NY, London and Hong Kong with JP Morgan, Morgan Stanley, Barclays, Citigroup etc.    (perhaps as I think those banks will move more of their space needs to less expensive markets and decrease their space in those high cost cities)

 

Edited by KJHburg
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