What is a money center bank? How is it different from a Regional bank

HereSince1628

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Mon Sep-29-08 06:47 AM
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What is a money center bank? How is it different from a Regional bank

and how are these banks different than the investment banks that are getting bailouts?

I wonder because of the top performing stock sectors last month, money center banks were number 1 and regional banks were number 3.

I suspect that having any understanding of what's going on requires being able to make this sort of disctinction.

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HamdenRice

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Mon Sep-29-08 07:39 AM
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1. Generally the big commercial banks in New York

Here is a description of the three main kinds of banks -- investment banks, commercial banks and savings banks:

http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=389x4105489

Money center banks are the biggest commercial banks. I said in New York, but Bank of America is also one and is based in California, so it's really just the biggest commercial banks.

Their size and proximity to Wall Street enables them to do things that smaller regional banks can't do, like participate more heavily in the securities markets.

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HereSince1628

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Mon Sep-29-08 01:26 PM
Response to Reply #1

2. Thanks. Wierd that they had such a good month in the face of this.

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