New England vs The Carolinas

[Scott]

Bank of America Center is a little long.

[monsoon]

[tocoto]

With mergers, a funny thing happens more often than people think. The bigger company takes over the smaller company, and then the huge new company, quickly or slowly, migrates to a new city with a center of gravity for that business. Some examples, Fleet of providence buys bank of new england in Boston - and moves to boston. Novel networks of Utah buys cambridge acssociates of Boston. After three years, it officially moves to boston. Mellon bank of Pittsburg buys the asset management department of a boston bank, then moves all of it's asset managment unit from Pitt. to Boston (HQ stays in Pitt.) Novartis AG of Switzerland, one of the largest Pharmceutical companies in the world, moves it entire R&D operation to Boston because in their words, they want to be at the center of biotech.

In the case of Fleet. BoA already says it will move its assets managment unit to Boston (a net increase in jobs in Boston in assets management, an area where boston is probably in the top 2 or 3 in the US). BoA is building a huge signature tower in NYC. Fleet has a major presence in NYC in addition to Boston (all have probably seen the huge fleet sign in times square). What are their plans for that building? I doubt it's a branch office on the first floor. Fleet also owns two large high quality skyscrapers in boston both with trading floors, executive suites, and incredible views.

My point. I wouldn't be surprised to see BOA move to Boston, NYC, or some combo of the two. Both are big time financial centers, and both are Federal Reserve HQ cities. The guys running BOA may decide they want to be in the middle of things, with the other big boys. Sort of like when Boeing moved to Chicago.

Obviously this doesn't always happen, but over the years I've seen it so many times.

[Cotuit]

Uh-oh!

[monsoon]

[tocoto]

My point is that it's not a certainty it will move, but a distinct possibility for the reasons I gave. Business leaders are generally egotistical and greedy, they go for short term benefits to major investors and senior management. In other words, they are motivated first and foremost to enrich themselves. No big secret there.

[monsoon]