LaSalle looks lucrative
LaSalle looks lucrative
By Doug Cameron in Chicago
Copyright The Financial Times Limited 2007
Published: April 18 2007 03:00 | Last updated: April 18 2007 03:00
LaSalle Bank, ABN Amro's US subsidiary, is viewed as one of the few significant expansion opportunities for institutions seeking tocomplete their US footprint following the latest burst of sector consolidation.
However, an expected price-tag of around $20bn will limit the available buyers.
With assets of $112bn, Chicago-based LaSalle ranks as the 12th-largest US bank, offering access to a rich deposit base in the Midwest and, crucially, the seam of mid-market corporate lending which is expected to drive earnings of around $1.4bn this year.
The Midwest bank market still remains fragmented in spite of the expansion of national operators such as JPMorgan Chase, whose purchase of Banc One removed the last remaining independent Chicago-based bank and created the region's largest lender.
LaSalle ranks second and its expansion from assets of just $6bn in 1990 is credited to the leadership of Norman Bobins, chairman and chief executive, whose adherence to "relationship banking" has made him a pivotal figure in Chicago's business and civic life, synonymous with sponsorship of sporting and cultural events.
Mr Bobins, who also leads ABN Amro's North American business, is due to retire at the end of the year and has split his role into separate heads of LaSalle and the Dutch bank's regional operation.
This week's appointment of Robert Moore, LaSalle's chief financial officer, as chief executive of ABN in North America highlights what rivals see as the unit's independent streak, even as an effective auction of the bank takes place in Amsterdam.
Mr Bobins was instrumental in wrestling ABN'sdebt capital marketsbusiness away fromNew York to serve his expanding mid-market business with a broader product range.
The evolution of theMidwest's battered manufacturing base has createda vibrant corporate lending sector, which is viewedas the main prize forboth RBS and Bank ofAmerica, LaSalle's leading suitors.
RBS has expanded its Citizens Bank business west from the east coast, including a recent Chicago acquisition, and buying LaSalle would see it overtake JPMorgan as the city's largest bank.
The UK bank has also signalled its desire to expand corporate and investment banking in the US.
By Doug Cameron in Chicago
Copyright The Financial Times Limited 2007
Published: April 18 2007 03:00 | Last updated: April 18 2007 03:00
LaSalle Bank, ABN Amro's US subsidiary, is viewed as one of the few significant expansion opportunities for institutions seeking tocomplete their US footprint following the latest burst of sector consolidation.
However, an expected price-tag of around $20bn will limit the available buyers.
With assets of $112bn, Chicago-based LaSalle ranks as the 12th-largest US bank, offering access to a rich deposit base in the Midwest and, crucially, the seam of mid-market corporate lending which is expected to drive earnings of around $1.4bn this year.
The Midwest bank market still remains fragmented in spite of the expansion of national operators such as JPMorgan Chase, whose purchase of Banc One removed the last remaining independent Chicago-based bank and created the region's largest lender.
LaSalle ranks second and its expansion from assets of just $6bn in 1990 is credited to the leadership of Norman Bobins, chairman and chief executive, whose adherence to "relationship banking" has made him a pivotal figure in Chicago's business and civic life, synonymous with sponsorship of sporting and cultural events.
Mr Bobins, who also leads ABN Amro's North American business, is due to retire at the end of the year and has split his role into separate heads of LaSalle and the Dutch bank's regional operation.
This week's appointment of Robert Moore, LaSalle's chief financial officer, as chief executive of ABN in North America highlights what rivals see as the unit's independent streak, even as an effective auction of the bank takes place in Amsterdam.
Mr Bobins was instrumental in wrestling ABN'sdebt capital marketsbusiness away fromNew York to serve his expanding mid-market business with a broader product range.
The evolution of theMidwest's battered manufacturing base has createda vibrant corporate lending sector, which is viewedas the main prize forboth RBS and Bank ofAmerica, LaSalle's leading suitors.
RBS has expanded its Citizens Bank business west from the east coast, including a recent Chicago acquisition, and buying LaSalle would see it overtake JPMorgan as the city's largest bank.
The UK bank has also signalled its desire to expand corporate and investment banking in the US.
posted by Carlos T Mock at 8:38 AM
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