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People's United Financial Inc. Message Board

  • readyrockg2003 readyrockg2003 Aug 14, 2004 11:44 AM Flag

    to all of you sour grapes...

    okay, first of all, what is up with this donkey and turkey stuff? It's not November yet, there is no election yet and Thanksgiving, according to my calendar, is not for another 3 months.

    secondly, the credit card division was sold mainly due to the tax breaks that were recently given to companies who outsource their jobs(send them overseas). Yes, it did also eliminate a lot of their debt, but it was mainly for tax breaks.

    the stock has been going down because of the recent rate hike and the fact that it is also approaching election time.

    I would not recommend selling just yet. Wait a few more weeks and see what happens.

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    • Illuminated? Hmmm, did they all get flashlights when they were laid off as some kind of going away present? I think you meant ELIMINATED, didn't you? Sorry, I had to laugh when I saw that.

      I could shed some light on this one, as I was actually working for the bank at the time. This was the first layoff since the recession of the early 1990's, and it resulted in only 1% of the workforce, which came out to about 38 employees. But from what I understand, about 35 of them were called back, some the same day as they were laid off. Yeah, I admit it sounds crazy, but what can I say? It's possible at Peoples?

      But you know what you need to do? Go to the stockholders meeting next year and address your concerns there. If you own even 1 share of stock, you have voting rights and you can also speak at the meeting.

      that's what I would recommend, above any buy or sell recommendation

    • Do you know anything about all the employees who's jobs were "so called" illiminated starting back in January of 02?

    • Right-On !

      One of the travesties of modern corporate culture, beyond the obscene levels of compensation paid to top management, is how management continues to line their own pockets while taking about flat profit growth an the need to reduce expenses. 700 people laid off.... all probably could have kept their jobs if senior management had foregone annual bonuses (bonuses for WHAT ?), or taken a 5% pay cut.

      What goes around, comes around. The corporate bandits are soon to be exposed, and put on the run.

    • Ready - Please stop saying 700 people were laid off - the majority of those people are on the Royal Bank of Scotland's payroll. They did not lose their jobs. In fact - I have heard that they are a better payer than People's and award bonuses to the "little people" instead of only the "big guys".

    • yeah, I know what you mean

      I mean, what good is it to make a few dollars on a stock if 700 people have had to give up their jobs in the process?

      and I bet that the members on the Board of Directors still got their annual bonuses and all of the other perks that they get. I know when I was laid off from my job last October, I was not happy when I found out that the CEO and all the board members still got their multimillion dollar bonuses. If I had looked up the word "callous" in the dictionary, I might have found some of their pictures in there.

      companies do need to have cuts in times like they are right now, but they should think a little more about where those cuts should be.

      and to you 700 people who lost your jobs, I want you to know that I do sympathize with all of you and I do hope that you can all find jobs very soon. I hope that none of you got the wrong impression from the previous comments I have made on here.

    • You need a bit of a history lesson, Rock.

      PBCT go into the credit card business, as a minor player, in the early 1980s. They were very selective about who they took as customers, and offered significantly lower interest rates than any of the major players. The division was wildly profitable, and the portfolio was sound (only highly credit-worthy folks got cards). As late as the late 1990s, the CC Division was accounting for almost 25% of PBCT's profit.

      Then the new-style management came in, and decided to go for the bigger bucks. They threw the doors open to anyone breathing, and stuffed the portfolio with a lot of customers with dubious credit records. As we started into the recession, Vitelli got scared that he would be facing massive defaults on this unsecured debt. So he started a sanitizing campaign, dumping anyone he (actually a stupid computer) thought might represent a default risk. Unfortunately, he dumped (and pissed off) a lot of good customers at the same time (the tactic was to find a way to raise the APR to over 30%, thereby "encouraging" unwanted customers to leave).

      The CC Division then started facing losses instead of profit, and since 2000 was a serious dead-weight on company performance.

      The Boys kept saying they were going to turn things around, but it was clear, after Vitelli's purge, that that wasn't going to happen.

      They had to sell, to stem the losses. The fact that they got a tax break was just icing on the cake.

      This management team took a highly successful and profitable credit card operation, and ran it into the ground in less than 3 years. That's the fact. This is how the whole bank is being run. Think about it !

      Gobble, gobble !!!

      • 2 Replies to razor2k00
      • Razor, you are always right on the money, Kudos to you. I am one of the 700 employees that were laid off, after 15 years of service. Make no mistake about it, the bank got real greedy and ended up shooting themselves in the foot. They hired many new employees whom they though would bring new ideas to the table and be able to make them profitable again. It didn't work, this new blood could give a real shit about the Bank and they ended up ruining a good thing. The pathetic Bankie had very loyal employees who really cared, and they were replaced by ruthless pigs. Now their own employees are stealing from them. You know the old saying, "Pigs get fat and hogs get slaughtered". It's only a matter of time before payback reaches the books.

      • One thing I should have probably told you before that you would not know unless you read other postings from me is that you are actually talking to a former employee of People's Bank. I worked there for almost 8 years and I have attended stockholders meetings, I have worked in 2 regions, and I have also had extensive personal interviews with some of the top executives of the bank. I have even spoken with John Klein himself.

        I would be lying to you if I told you that I don't think the bank has its flaws, I mean, yes, they did lay off 700 employees this year, but before that they had gone through over 13 years of not laying off one employee. In addition to that, they have also been able to have 3 stock splits and consistent dividend increases while other companies have not even offered dividends for years.

        I see what you are saying, but why do you feel that a company that pays quarterly rising dividends and has stock splits, which generage massive profits for stockholders, is a bad investment? I can see it maybe if you are a short seller, but maybe if I heard your views on this, I might understand it better.

        would you mind explaining why you feel it is a bad company to invest in under those conditions?

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