PNC/Riggs
And the bank mergers keep on coming! (This one is getting personal, since PNC is my own local bank.)
PNC Financial will buy out scandal-plagued Riggs Bank for $770 million. Pittsburgh-based PNC is one of the bigger regional banks left on the table and a constant subject of takeover rumors by first tier banks. The bank is the 17th largest in the US, with operations primarily in Pennsylvania, New Jersey, Ohio, Kentucky, and Delaware. PNC has been growing, with the $638 million buyout of UnitedTrust banks of New Jersey earlier this year. The Riggs deal would give it branches in Maryland, Virginia, and the District of Columbia.
Washington (D.C.)-based Riggs Banks has had major international dealings. The 168-year old institution is the only major locally-owned bank in the capital area. It is under investigation for secret dealings with former Chilean strongman Pinochet. It also violated the Bank Secrecy act by not declaring enormous money-laundering transactions from sources in Saudi Arabia and (oil rich) Equatorial Guinea. There's even suspicion that some the Saudi money may have been sued to finance terrorism. Tales of suitcases stuffed with $100 bills carried over from Washington embassies were icing on the cake.
The big retail banking players in the Washington area are Wachovia, Bank of America, and SunTrust. Analysts are skeptical that PNC can gain a foothold in the market, especially given the problems in deal with ongoing investigations and the reputation hit Riggs has received.
7:55:16 PM 
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