Report: LaSalle Bank sale could cost 10,500 jobs in Chicago area
Report: LaSalle Bank sale could cost 10,500 jobs in Chicago area
By Barbara Rose
Copyright © 2007, Chicago Tribune
11:00 AM CDT, August 22, 2007
A report analyzing the likely impact of Bank of America's acquisition of LaSalle Bank Corp. estimates that more than 10,500 jobs in the Chicago area will be lost over a two-year period, resulting in more than $780 million in lost wages.
The report, released today was prepared by research firm Anderson Economic Group LLC and commissioned by a coalition of labor and community groups that hopes to persuade Bank of America to retain area jobs.
The $21 billion bank deal is expected to close early in the fourth quarter.
A Bank of America spokesman said no staffing decisions have been made and "specifics on jobs would be premature as the analysis is ongoing."
"Once the transition is complete I think you're going to find a stronger company that will contribute to the growth of the economy and be a strong partner to the communities we serve," he said.
Among the sponsors of the study are Service Employees International Union Local One and the Woodstock Institute, an economic development policy and research group.
LaSalle Bank Corp. employs about 15,000 people nationwide and operates LaSalle Bank, headquarted in Chicago, and LaSalle Bank Midwest, headquartered in Troy, Mich.
The study assumes that North Carolina-based Bank of America will eliminate LaSalle Bank's headquarters jobs, laying off staffers or transferring their positions to North Carolina, while keeping most branch positions.
Some laid-off employees will start businesses, creating job growth; others will find jobs at firms that are expanding, the study states. It estimates the net number of jobs lost at more than 4,000.
"Over time, as the job losses ripple through the econmy, we estimate an additional 6,500 to 6,700 jobs will be lost as the economy contracts due the direct job losses," the study states.
State and local governments will collect about $16 million less in tax revenue in 2008 and $32 million less in 2009 due to the earnings losses, the study states.
berose@tribune.com
By Barbara Rose
Copyright © 2007, Chicago Tribune
11:00 AM CDT, August 22, 2007
A report analyzing the likely impact of Bank of America's acquisition of LaSalle Bank Corp. estimates that more than 10,500 jobs in the Chicago area will be lost over a two-year period, resulting in more than $780 million in lost wages.
The report, released today was prepared by research firm Anderson Economic Group LLC and commissioned by a coalition of labor and community groups that hopes to persuade Bank of America to retain area jobs.
The $21 billion bank deal is expected to close early in the fourth quarter.
A Bank of America spokesman said no staffing decisions have been made and "specifics on jobs would be premature as the analysis is ongoing."
"Once the transition is complete I think you're going to find a stronger company that will contribute to the growth of the economy and be a strong partner to the communities we serve," he said.
Among the sponsors of the study are Service Employees International Union Local One and the Woodstock Institute, an economic development policy and research group.
LaSalle Bank Corp. employs about 15,000 people nationwide and operates LaSalle Bank, headquarted in Chicago, and LaSalle Bank Midwest, headquartered in Troy, Mich.
The study assumes that North Carolina-based Bank of America will eliminate LaSalle Bank's headquarters jobs, laying off staffers or transferring their positions to North Carolina, while keeping most branch positions.
Some laid-off employees will start businesses, creating job growth; others will find jobs at firms that are expanding, the study states. It estimates the net number of jobs lost at more than 4,000.
"Over time, as the job losses ripple through the econmy, we estimate an additional 6,500 to 6,700 jobs will be lost as the economy contracts due the direct job losses," the study states.
State and local governments will collect about $16 million less in tax revenue in 2008 and $32 million less in 2009 due to the earnings losses, the study states.
berose@tribune.com
posted by Carlos T Mock at 9:58 AM
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