Bank of America, the nation’s second-largest bank, announced today it is buying LaSalle Bank for $21 billion in a deal that would reshape the Chicago banking scene and possibly lead to a name change, according to people familiar with the deal.
The sale of Chicago’s second-largest bank is being triggered by the acquisition of LaSalle’s Dutch parent, ABN Amro, by the British bank Barclays PLC for $91.16 billion. In addition to the 140 Chicago-area branches, LaSalle operates 260 branches in Indiana and Michigan. It is Detroit’s largest retail bank.
The purchase of ABN Amro would be the world’s biggest bank takeover and would double London-based Barclays’ revenue from consumer banking by adding retail branches in 53 countries, including the Netherlands, Brazil and India.
The deal’s not a solid one yet—there are some other bidders interested.
I’m four-square behind this sale if it means that BoA will take over LaSalle’s branches. If it means that BoA will be closing LaSalle’s branches it would be a disaster.
Nearly 50 years ago I began banking at Clayton Bank in Clayton, Missouri (the county seat of St. Louis County). We knew our banker—an old family friend. 30 years ago when I got my first credit card I got an American Express Gold Card on a handshake.
Then, spurred by reforms in the regulations on branch banking, the consolidation of banking began. Clayton Bank was sold to Boatmen’s Bank (another old friend). Then Boatman’s Bank was sold to NationsBank. NationsBank was acquired by Bank of America and that’s where I rather inconveniently do my banking.
