BankAmerica, Security Pacific Join Forces FX Union Means Less Jobs, Less Liquidity
BANKS
BankAmerica (BA) announced its plans to acquire Security Pacific earlier this week, the third major U.S. banking merger this year. Though the combined unit will win a higher credit rating and emerge with a higher profile in the foreign exchange market worldwide, its foreign exchange trading operation will likely be substantially reduced, sources familiar with the banks say, which will chill liquidity in turn (see related article, this issue).
For the most part, treasury officials in both banks
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