This paper discusses the bank merger between Memphis based National Bank of Commerce (National Commerce Financial-Holding Company) and Sun Trust Bank (Sun Trust, Inc. ?Holding Company). This paper does not seek to present evidence in support or against the merger. It merely supplies a review of each institution and an educated prediction of resulting entity. This paper relies on information mostly gained from marketing and/or literature from each perspective bank?s web site, brochures or other sales mediums rather than data validated by an independent third party. Overall, we stress that while economy of scale provides the financial stability necessary for the entities to compete in today?s financial markets in the US and globally, there remains a need for Memphis-based ?community champions? which are directly focused on serving the needs of local consumers.
Some analysis today suggests that one the causes of the Great Depression in the U.S. was bank over competition. This was solved in part through the passing of the Glass-Steagall Act, which forced financial firms to choose between wholesale and retail banking also called Money Centers, and the 1928 McFadden Act which prohibited interstate banking.
Though this restrictive environment was meant
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