Perception of Charlotte Nationwide

[elvigy]

And, just to inflame the whole argument about whether or not Charlotte is a financial center or not, the article refers to us as, well, I'll let them speak for themselves...

"...is the largest U.S. financial center after New York City and home to two of the largest banks in the world, Wachovia and Bank of America."

Just to be clear, I don't seriously present this as evidence that we are that big of a financial center. As argued previously, we may (or may not) have the statistics available to prove that. But it certainly shows that Charlotte is THOUGHT to be a major financial center. At least among a certain segment of the population. And they say perception is reality.

[Andyc545]

And, just to inflame the whole argument about whether or not Charlotte is a financial center or not, the article refers to us as, well, I'll let them speak for themselves...

"...is the largest U.S. financial center after New York City and home to two of the largest banks in the world, Wachovia and Bank of America."

Just to be clear, I don't seriously present this as evidence that we are that big of a financial center. As argued previously, we may (or may not) have the statistics available to prove that. But it certainly shows that Charlotte is THOUGHT to be a major financial center. At least among a certain segment of the population. And they say perception is reality.

We are the number two financial institute in the US by controllable assets ($2 trillion). And of controllable Fortune 500 banks: we have #2-BofA (CLT) (after #1-Citi, NYC) (#3-JP Morgan, NYC), #4 Wachovia (CLT), so by these viewpoints, yes we are the number 2 banking center. I think these are the two most legitimate viewpoints, also, for making this determination, so IMO I conclude that we are the number 2 banking center in the US.

[krazeeboi]

We are the number two financial institute in the US by controllable assets ($2 trillion). And of controllable Fortune 500 banks: we have #2-BofA (CLT) (after #1-Citi, NYC) (#3-JP Morgan, NYC), #4 Wachovia (CLT), so by these viewpoints, yes we are the number 2 banking center. I think these are the two most legitimate viewpoints, also, for making this determination, so IMO I conclude that we are the number 2 banking center in the US.

I don't think the 2nd largest banking center claim has really been disputed. It's the 2nd largest financial center claim.

[ChiefJoJo]

I was thinking the same thing but we have two things going against us IMHO - we're still perceived to be in the "old South" in the minds of so-called progressives in the Northeast and West and our primary competitor city-state is Atlanta - home to major media outlets that perpetuate the notion that the "new South" world revolves around Peachtree Street. Nevertheless it will become harder and harder to ignore Charlotte if she continues along this major growth spurt and successfully attracts outlets like RISD and major retail to her core. At that point, I would argue "how cares what other people think..."

Funny, I have always thought of Charlotte very much as the "New South," probably right behind Atlanta. I can't think of another city that fits that label more appropriately. Conversely, I would think of cities like New Orleans, Savannah, Charleston, and Richmond as the "Old South." Those four were actually CITIES prior to the turn of the century and have experienced modest growth more recently. Atlanta and Charlotte have grown at a fantastic rate since the 70s... hence, the "New South."

Somebody mentioned the transit vote... I think that is going to prove to be a major statement for Charlotte on a national stage ("transit-tier city"?), but also hopefully will send a strong message to the leaders around the state (stuck in the 1950s-era policies) that moving towards transit and compact urban development is a direction we all should go eventually.

[VistaLakes01]

Funny, I have always thought of Charlotte very much as the "New South," probably right behind Atlanta. I can't think of another city that fits that label more appropriately. Conversely, I would think of cities like New Orleans, Savannah, Charleston, and Richmond as the "Old South." Those four were actually CITIES prior to the turn of the century and have experienced modest growth more recently. Atlanta and Charlotte have grown at a fantastic rate since the 70s... hence, the "New South."

Somebody mentioned the transit vote... I think that is going to prove to be a major statement for Charlotte on a national stage ("transit-tier city"?), but also hopefully will send a strong message to the leaders around the state (stuck in the 1950s-era policies) that moving towards transit and compact urban development is a direction we all should go eventually.

Very impressive, Charlotte! It sounds like there is actually an international perception of Charlotte and fashion. We've gotten that same type of recognition in Orlando and Tampa areas recently also. We are all not just the "new South", we are the "new US" in general, the American cities of the 21st century!

[Temeteron]

Yes, I feel that compared to other cities in the South in ex. Savannah, Charleston, Columbia, Winston-Salem, Augusta, Birmingham, Richmond, and Memphis.......Charlotte & Atlanta are waaay more "New South". The fashion sense, the open-mindedness, the transplants, the transit, the restaurant scene, the progession, are all apparent when compared to other parts of the South....... Florida and Texas excluded....those two states tend to be their own country lol

Edited December 19, 2007 by Temeteron

[atlrvr]

Not that this changes Charlotte's perception in most people's eyes, but Winston & Strawn law firm announced today that they were opening a Charlotte office.

Their 9 other offices are Chicago, NYC, Washington, San Francisco, Los Angeles, London, Paris, Zurich, and Moscow.....not exactly small markets.

I don't know much about law firms....how likely would it be for someone in the Charlotte office to need to travel to say, Paris or Zurich? These are the top 2 destinations I'd like US Airways to add.

[Neo]

I don't know much about law firms....how likely would it be for someone in the Charlotte office to need to travel to say, Paris or Zurich? These are the top 2 destinations I'd like US Airways to add.

Fairly likely I would imagine, but I suppose it depends on what type of law is being practiced. I worked in the IT department for a law firm in Chicago before moving back to Charlotte a few years ago. Most of the practice was intellectual property law but we had an office in London and several attorneys made regular trips back and forth. I'm not sure how common this is but I thought I'd put in my two cents.

[Raintree21]

To answer the question on what kind of law they will be practicing, the CBJ says:

"six partners who previously practiced in the lending and corporate-finance group of Kennedy Covington Lobdell & Hickman."

and

"the new office will initially focus on the corporate-lending practice area"

And back to the question of are we a banking or a finance center, in the article, Thomas Fitzgerald, the managing partner of Winston & Strawn, calls us the #2 banking center in the nation.

Edited January 10, 2008 by Raintree21

[cltheel.sdl]

My dad's company (Areva) has its US headquarters in Lynchburg, but world hq in Paris. He's made the trip before - it would certainly be nice if we got a direct!

[Commoner]

Not that this changes Charlotte's perception in most people's eyes, but Winston & Strawn law firm announced today that they were opening a Charlotte office.

Their 9 other offices are Chicago, NYC, Washington, San Francisco, Los Angeles, London, Paris, Zurich, and Moscow.....not exactly small markets.

I don't know much about law firms....how likely would it be for someone in the Charlotte office to need to travel to say, Paris or Zurich? These are the top 2 destinations I'd like US Airways to add.

I'm very familiar with this. It would be very unusual to have to travel to an international office. Chicago, New York, San Francisco or Los Angeles are reasonably likely (in the context of W&S as a whole -- not necessarily even this office) but there's almost no reason to go overseas, unless there is an annual all-partners meeting. Even then, it's likely to be in Chicago for W&S (their homebase). The attorneys that will comprise this office are all from Kennedy Covington, a local firm, and they will likely continue the same work for BOA and WB that they've been doing all along.

[Bynocerus]

I respectfully disagree, Commoner (and I can't stress the word respectful enough. I'm not an attorney, so I can't speak for the law profession, and I'm most certainly not trying to be disagreeable).

When all hell is breaking loose, it is not uncommon for partners/associates/analysts at a MAJOR firm I am intimately familiar with to travel to locales such as London, Paris, Thailand and even Poland.

A law firm with an international presence is great news, but it would be nice if the firm were focusing on areas not associated with traditional banking. Again, this is great news, but as I've mentioned before on this thread, Charlotte is and is not a financial center depending on what the definition of is is (sorry, couldn't resist, even though I like President Clinton), and if the firm were involved in defeasement, Hedge Funds, derivatives, PE, etc, that would be much more welcome.

[VistaLakes01]

I work in the financial industry (brokerage side) for a major company who has a major center in the Orlando area, HQ is in San Francisco. We also now have our own bank based in Reno, NV. The head and namesake of the co?mpany visited our offices yesterday and a co-worked asked him about Goldman Sachs announcement of the impending recession and if he thinks the country if going in to a recession, and he stated that the country is already in a recession, with the mortgage mess and banks tightening up on lending which spurs growth. He stated that we are probably one of the few financial companies in great shape and our bank didn't get involved in the shady mortgage business. My point being, he said it's possible to see a few of the major banks go under or be taken over by stronger companies. He said as an example, say Wamu takes over BOA and moves HQ out of Charlotte and the trickle down effect that would have on the financial business that survive off of a large bank such as BOA and set up business near BOA HQ. Point being, does Charlotte have a diverse enough economy to handle a major collapse and changes in the banking industry? Thats my main question, how diversified is Charlotte's economy? I'm unfamiliar with other large businesses there and am wondering what they are?

[atlrvr]

The simple answer is, no domestic bank is able to but BofA for a variety of reasons, and none could really buy Wachovia either, though a merger with Wells Fargo could be possible. An international takeover could be possible, but it would be less likely to lead to a major reduction in Charlotte's workforce.

As for the hypothetical...Charlotte would be set back 10-20 years if either of its two large banks left....it would be catastrophic.

[Raintree21]

BOA is reportedly in talks to buy Countrywide Financial outright.

[swh1972]

BOA is reportedly in talks to buy Countrywide Financial outright.

No longer just talks. Has been announced as an agreement. $4 Billion in stock deal.

[Raintree21]

I guess technically you could say $6 billion total since BOA already shelled out $2 billion in a previous partial purchase of the company. Since Countrywide is based out of California, this will give BOA an even bigger west coast presence.

[Commoner]

I respectfully disagree, Commoner (and I can't stress the word respectful enough. I'm not an attorney, so I can't speak for the law profession, and I'm most certainly not trying to be disagreeable).

When all hell is breaking loose, it is not uncommon for partners/associates/analysts at a MAJOR firm I am intimately familiar with to travel to locales such as London, Paris, Thailand and even Poland.

A law firm with an international presence is great news, but it would be nice if the firm were focusing on areas not associated with traditional banking. Again, this is great news, but as I've mentioned before on this thread, Charlotte is and is not a financial center depending on what the definition of is is (sorry, couldn't resist, even though I like President Clinton), and if the firm were involved in defeasement, Hedge Funds, derivatives, PE, etc, that would be much more welcome.

No disrespect taken. For what it's worth, I work for a major international firm based elsewhere. I also happen to work on the syndicated (read: non-securitization) sort of deals that W&S attorneys will be doing, representing lenders. When all hell breaks loose, it's ordinary for borrower's counsel to go where they're needed. The only traveling we do is due to: (a) due diligence (usually at the location of the borrower (due diligence, however, is usually completed via restricted online datarooms now, so DD travel isn't common (for Lender's counsel))); (b) marketing purposes (that assumes you're marketing to non-CLT-based bankers; © "ceremonial" closings (most closings take place via emailed PDFs and FedEx, but sometimes huge closings are followed by a dinner (usually NYC, DC or location of Borrower, assuming such location is "cool" enough)); and (d) internal meetings, which are rare (once/year) and usually at the firm home base.

Now - with respect to the work being done, I don't know these lawyers personally, but Kennedy Covington has (and continues to have) a respectable diverse finance practice. They even do some of the private equity/venture capital work you referred to. There are several other shops in Charlotte with less- and more-sophisticated PE/VC groups, too. Unfortunately, with respect to deafeasments, Cadwalader has a certain depth of experience. The unfortuante news is that they just laid-off about 12 attorneys and several staff members in Charlotte.

Can I ask which firm you work with? I don't want to "out" anyone on this forum (as I particularly don't want to be "outed" ... anonymity makes a lot of us more confortable with reporting/asking/commenting as we do), but I'd be curious to know which firm it is.

Edited January 11, 2008 by Commoner

[monsoon]

Forbes has ranked Charlotte as 7th best city in the country in terms of having access to broadband options. Now that AT&T is offering naked DSL in our area, I sent TWC walking and went for this option.

[1979Heel]

I work in the financial industry (brokerage side) for a major company who has a major center in the Orlando area, HQ is in San Francisco. We also now have our own bank based in Reno, NV. The head and namesake of the co?mpany visited our offices yesterday and a co-worked asked him about Goldman Sachs announcement of the impending recession and if he thinks the country if going in to a recession, and he stated that the country is already in a recession, with the mortgage mess and banks tightening up on lending which spurs growth. He stated that we are probably one of the few financial companies in great shape and our bank didn't get involved in the shady mortgage business. My point being, he said it's possible to see a few of the major banks go under or be taken over by stronger companies. He said as an example, say Wamu takes over BOA and moves HQ out of Charlotte and the trickle down effect that would have on the financial business that survive off of a large bank such as BOA and set up business near BOA HQ. Point being, does Charlotte have a diverse enough economy to handle a major collapse and changes in the banking industry? Thats my main question, how diversified is Charlotte's economy? I'm unfamiliar with other large businesses there and am wondering what they are?

WaMu is on its deathbed and will likely be bought be JPMorgan Chase. Your banker sounds jealous and ill-informed. Probably at Wells Fargo and still annoyed that Charlotte is a much more important financial center than San Francisco. Even at its healthiest, WaMu could never have begun to take over Bank of America. Where do people get these things?

BTW, Wells issued a lot of loans in markets that are tanking. Even though Wells didn't get involved in CDOs, I wouldn't be too sure that Wells is in great shape.

[VistaLakes01]

WaMu is on its deathbed and will likely be bought be JPMorgan Chase. Your banker sounds jealous and ill-informed. Probably at Wells Fargo and still annoyed that Charlotte is a much more important financial center than San Francisco. Even at its healthiest, WaMu could never have begun to take over Bank of America. Where do people get these things?

BTW, Wells issued a lot of loans in markets that are tanking. Even though Wells didn't get involved in CDOs, I wouldn't be too sure that Wells is in great shape.

Sorry you took what I said wrong. I was asking if Charlotte has other major industries besides banking, and the example about WaMu was just a "what if." Actually I'm not with Wells, I'm with Charles Schwab and it was Mr. Schwab himself who stated that we are already in recession and the financial industry will be a major player in the recession. Citigroup already announced layoffs yesterday and Merrill Lynch is in trouble. Actually Schwab has remained strong and Schwab bank did not involve itself in the mortgage madness. So my question is just like Orlando has a major stake in tourism (although the economy has diversified greatly in the past ten years where while tourism is still the number one employer, it makes up 20% less of the economy here then 10 years ago. EA sports and other video game companies and related businesses has become a large part of the economy, as well as the medical research industry, with Burnham Institute relocating to Orlando from San Diego, the UCF Medical School is under construction (UCF has the 2nd highest enrollment of Florida Universities and will be larger than UF in 5-10 years. There is a new VA Medical Center under construction, and Nemours Childrens Hospital under construction as well as major expansion of the areas two major hospital networks which are both among the top 5 largest systems in the country. I just wanted an example of what other business Charlotte has to offer as far as major industries. Nobody has mentioned anything else as long as I've been reading the Charlotte thread. I have a major interest in Charlotte, I've got a couple of friends who've moved there and I've considered moving there. One friend is on his way to moving back to Orlando next month and is giving up his great job, he personally didn't find what he expected in Charlotte. He misses the dining and nightlife scene. The other friend loves it because the crime rate is a lot lower and he's more of a conservative and says Charlotte is a better family city, Orlando being too liberal, which I find as a benefit.

[HopHead]

Sorry you took what I said wrong. I was asking if Charlotte has other major industries besides banking, and the example about WaMu was just a "what if." Actually I'm not with Wells, I'm with Charles Schwab and it was Mr. Schwab himself who stated that we are already in recession and the financial industry will be a major player in the recession. Citigroup already announced layoffs yesterday and Merrill Lynch is in trouble. Actually Schwab has remained strong and Schwab bank did not involve itself in the mortgage madness. So my question is just like Orlando has a major stake in tourism (although the economy has diversified greatly in the past ten years where while tourism is still the number one employer, it makes up 20% less of the economy here then 10 years ago. EA sports and other video game companies and related businesses has become a large part of the economy, as well as the medical research industry, with Burnham Institute relocating to Orlando from San Diego, the UCF Medical School is under construction (UCF has the 2nd highest enrollment of Florida Universities and will be larger than UF in 5-10 years. There is a new VA Medical Center under construction, and Nemours Childrens Hospital under construction as well as major expansion of the areas two major hospital networks which are both among the top 5 largest systems in the country. I just wanted an example of what other business Charlotte has to offer as far as major industries. Nobody has mentioned anything else as long as I've been reading the Charlotte thread. I have a major interest in Charlotte, I've got a couple of friends who've moved there and I've considered moving there. One friend is on his way to moving back to Orlando next month and is giving up his great job, he personally didn't find what he expected in Charlotte. He misses the dining and nightlife scene. The other friend loves it because the crime rate is a lot lower and he's more of a conservative and says Charlotte is a better family city, Orlando being too liberal, which I find as a benefit.

Hey Metrowester - Yes, Charlotte is a city that is mostly known for it's financial ties with the banks, but there are other industries here that add some diversity to the economy. We have Lowe's Home Improvement as well as Duke Power headquartered here. Hospitality is fairly big with a number of larger hospitals surrounding the city. Attorneys are also a big part of center city and surrounding areas. There are several good size lawfirms here as well as several with international ties (don't know the names off the top of my head, but a neighbor who's a state prosecutor is well in the know on that). US Airways is starting to grow more here. Not just the airport but a lot of pilots and crews are now living here as well. There is also talk of US Airways adding more pilot simulators to the area which would bring more high paying jobs. There is of course NASCAR. They are building their Hall of Fame here and will be moving a lot of those corporate jobs to center city by 2009 or so. Not too far north of Charlotte, the billionaire David Murdoch is building a multi-billion dollar biotech park that's supposed to create thousands of jobs. Most of the major state universities have already bought into it. I'm sure I've missed some things, but as you can see while Charlotte is a banking city, it also has a lot of diversity that is being added.

Edited January 16, 2008 by dbull75

[Miesian Corners]

...I was asking if Charlotte has other major industries besides banking...

Charlotte's economy is based on FIRE, transportation and wholesaling. In terms of the largest employers in Mecklenburg County , the banks are huge, with Wachovia and Bank of America employing nearly 35,000. But the biggest employer in the county is actually Carolinas Healthcare System with a whopping 26,000 person payroll. Other biggies are Duke Energy (7,500), US Airways (5,000), Presbyterian Healthcare (5,000), and Compass Group, USA (3,000). All in all, there are over 55 firms in the county that employ over 1,000 people.

[1979Heel]

You know, my answer was not well-thought out-sorry if it seemed snippy. There is diversity in employment here but I might recommend you also look at Raleigh snce CSFB and Fidelity have or are building major facilities there. Might that be a match for your role within Schwab?

Other answers have covered Charlotte's other major employers I need not repeat them.

Edited January 16, 2008 by 1979Heel

[Justadude]

I think that, even in the worst of times, Charlotte will always have a certain amount of stability due to its importance in transportation. This was what made the city important many decades ago and continues to "feed" our other industries via the interstates, rail and airport. Considering Charlotte has no waterfront, it has a remarkably healthy role in distribution.