There is plenty of financial news this morning:
All eyes have been on Washington where it looks like a default will be averted, as I suggested it would. US financial markets opened sharply higher, but have fallen back. Why? Congress and the President have only delayed our nation's financial reckoning, and markets see that and are not impressed.
First Niagara Financial is buying HSBC's upstate NY branches, which will give First Niagara the leading market share position in Rochester. First Niagara is said to have outbid M&T Bank (already has plenty of branches) and Key Bank (since the financial crisis not enough muscle to make the buy). One hopes they will do a better job than HSBC in running the local operation. I also have a concern for First Niagara shareholders. We have seen this bank do deal after deal to get bigger and bigger. Now they are a large bank within their markets; can they start to bring earnings to the bottom line and continue to increase dividends to shareholders?
And today's Wow! news: PAETEC sells out to Windstream. While most PAETEC shareholders are no doubt happy with today's 20% price boost based on the merger news. City Hall is nervous as it becomes increasingly apparent that the planned PAETEC headquarters - crown jewel of the Midtown development - will not get built.
(This article contains the current opinions of the author but not necessarily those of Brighton Securities Corp. The author's opinions are subject to change without notice. This blog post is for informational purposes only. Forecasts, estimates, and certain information contained herein should not be considered as investment advice or a recommendation of any particular security, strategy or investment product. References to specific securities and their issuers are for illustrative purposes only and are not intended and should not be interpreted as recommendations to purchase or sell such securities).