Steve Syre

" Welcome back Tom Finneran here you while listening to parents for money M 680. WRKO happy Columbus Day to one and all -- had a spectacular weekend. I know why did want -- great days as swimming down here in the cape too beautiful sunrise is too gorgeous sunsets how could go wrong and to follow it up. At the top of the -- here on a holiday we go to Steve's -- at every day we do the Boston business report with the Boston Globe's Steve -- in today's edition of the business report is brought to buy SP allies savings bank life insurance but wanted Steve --"

" NATO are you doing great happy Columbus did to the account and I -- before that you know if that what you're in the legislature restore the private sector to yet spit if you -- office open on -- stay back in the day."

" I would have been working evenings weekends holidays. As that after I wash the floors on my hands and knees to build character and a couple of parades to get a better a couple of parades that -- Columbus Day parade to Macy hog all of the -- could try to be Italian when we went out the data. But -- you know when he came to the real stuff like the north and festivals in the it's -- a mistake that was -- the -- lock stock and barrel. What you're going to sell a pickup that you while we would hope hey speaking of picking up the tab Steve on now page 88 of the Boston Globe. Couple of interest in banking developments in the interest in because of the local impact so probably. Yeah -- and and citizens what's going on."

" Right is there -- the second and third largest banks and in the State's government citizens between them. Embattled 500 branches in Massachusetts obviously a big deal on there's significant ownership issues that are going on right now that that could affect. First citizens which is. We think of it as a as a local bank but in reality. Is owned by the Royal Bank of Scotland has been for many years and the royal is one of these international banks that are having a lot of problems and in England there's a big new bank bailout plan rolling out today and part of it appears that the Bank of England. Essentially the Federal Reserve England. Is going to become a majority owner -- just injecting some capital it's going to become a majority owner. And the CEO Fred Goodwin is going to leave the current -- a huge deal and and exactly how it might affect citizens. I'm not sure right I expected in the citizens case it's been neutral maybe despite positive it's certainly not a negative. But you know. In recent years. The royal bank of Scotland. Has been looking at its American assets and and citizens bank -- a big part of that but not all banks. And -- try to wrap it up to something larger and and it looked like citizen's identity was changing a little bit and you know right now sort of having a bread and butter. Banking business we take deposits and make laws it is really invoke instead of being obviously. Out there on the on the cutting edge so. You know that's really what citizens does so perhaps this would be a positive citizens."

" And I read in the paper that royal bank itself 61%. Drop in its market value that would. Inevitably have to get the attention of of everybody."

" Absolutely got you know that's the bank it and Fred -- the guy I was running it was a very aggressive guy -- was. Clearly bent. Building one of the the world's largest and most powerful banking companies and interest a year ago he had led. A a consortium of fires that that struck the biggest banking deal over a hundred billion dollars for a big Dutch bank. You know literally twelve months ago or someone to go from -- to. You know essentially having the government take off your bank and you being out of the job is is a big deal obviously."

" Tell us what's going on with sovereign on the other front on -- local banks."

" That it doesn't -- where I think this would be a a plot forward for us here for a sovereign locally. The sovereign although it's a public company. As a big slug of its stock about two point 5% of the company is owned by a Spanish bank of Cendant air and among those the big global bank that is one of the book one that is in the bash people all right now. And they're actually going around looking at things to five when Washington Mutual was on the block. It looked at that one Wachovia was in trouble they looked at that. And right now stubborn you know. Although I personally think sovereign is fine but you know it had this one wild day recently with the stock you know just. Fell off a cliff and it is it was a very jittery time. And editor appears to be in position to move in and -- the 75% of the company. It doesn't own all ready and if any thing for the bank itself this will be a stabilizing. Bank Asia editor about. Three years ago they came in they bought this. Point 5% interest in and sovereign at the time they did it. They -- struck a deal. With which with a kind of -- that was with regulators to basically said. You know it is stubborn was in any kind of problems that it would act is some sort of stabilizing influence. And you know whether or not you know regulators sort of all of them on this war. Whether they were just step again and making the most of an opportunity is unclear but -- it would tenants here bought their first truck that they paid something like. Twenty or 26 dollars a share they're going to pay something's out of four dollars a share."

" For the rest of the company that is absolutely astounding when you think of the the drop in the drop in Dahlia. And there at this point still there they're pretty solid bank through the they're pretty liquid. Our thanks go the states."

" It I think was okay what is it had some problems you know. Going back probably a year ago now it. They came out they said well you know we've been buying. It you know -- is that a lot of talk about how people world insecurities of mortgages that got in the trouble. They own packages of home equity loans that that had run into trouble they ended up selling them -- a big loss. And basically it department so well that was bad but it's over now and a little while later they came back it's simply you know awhile ago we we kind of expanded we started you know writing these. Car loans in the south east and but it does so well and have been and we got a -- lost on that but that's bad but it's over now. That I cannot accept you know this Fannie and Freddie preferred."

" Dark you know real real trouble well we don't a lot of that bill and and it's really bad but that's over now and apparently I believe. Robert was basically okay but their credibility it would shot at that point and then when Wachovia sort of fell off a cliff a little while ago a much bigger bank of -- biggest bank in the country. Is very very we're very large. You know at that point the next -- the stock -- you know just one in."

" And sound like it was -- but Steve was something new we're right credit."

" All -- know there wasn't any specific information that you know the bank was in trouble but I think people would just panicked at that point in the I believe. Sovereign had lost its credibility Joe Campanella the guy who have been the CEO at the bank was essentially replace that --"

" And was Paul a row I want to say that director Paul roll call for all. How was he an internal. Guy from from the border from the executive team old was he brought in but he parachuted in from outside."

" If I am embarrassed they had lost track of the details as well I'm not sure about that one but. You know clearly I think that. As I say I think it was a perception that. It get out in in a panic environment which is what we were and that you know that. Credibility have become an issue and death Stoppard has suffered a lot and now you know if if the Senate -- guilt takes place which it did it appears that will be. Senator as a gigantic very well capitalized very well run bank that will be and extremely stabilizing influence."

" So Steven if fury. -- Lewis resources that at sovereign. Then you should cease sanitary as a as a good thing that them moving in they're going to give sovereign more more liquidity and and surely the capital resources they need. To continue on and and not have to worry about any of the concerns like Wachovia. Experience in the last couple weeks."

" We -- we do recommended as a goodbye."

" As a -- and well I believe it's going to be taken over shortly thought not sure you don't know what it is going to happen to her to be honest it's not clear is definitely going to happen but it certainly here's the contract at this."

" to warrants question anti holly it's kind of on a related issue. As Citicorp had done a pretty impressive and fairly aggressive expansion here in Massachusetts that broke open up about duty duty five. Branches that have you know -- bricks and mortar commitment what I which I always found oppressive. I'm I'm curious Citigroup Bank of America may be even Wells Fargo. Are we likely to see more activity from any of those three with street got to stepping in man grabbing. You know assets that it now while priced very favorably."

" That's entirely possible that it you mentioned Citibank is they certainly did coming to Massachusetts and become more aggressive. I believe that it is said he was very focused on trying to I'm rich people do business with for the most part and I think if you look at. Where most of their branches were open there weren't. Very Tony areas and you know where that. Strategy is going to leave."

" Arsenal authorities stammer as opposed to Matta yeah yeah. -- say you are always a well. -- information I love the insane on these two big big stories. Now we'll stay with -- obviously we will return it to you tomorrow at the same time. Today's edition of the Boston report with the boss but the bus and business report with the Boston -- Steve -- has been brought to you by SB ally. Warrant told and holly rubber Jeremy Tom Finneran will be back to all of you in a moment on AM 680 WRKO."