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CSX renews partnership with minority-owned banks
Silliness, Mr. Ward.
I not sure how small banks work with large corporate structures. Operating advice, maybe? Certainly small banks would not have enough capital to loan.
As a retired banker I can imagine a way, but it is pretty farfetched: maybe CSX agrees to borrow a small sum of money (say $10 million) on a ten-year, non-amortizing basis. The lead bank would share the loan (that’s perhaps what the “syndicate” is referring to) and thus there would be a very strong, long term earning asset to contribute to (even smaller) local banks’ earnings profiles. Just a thought.
As a retired banker I can imagine a way, but it is pretty farfetched: maybe CSX agrees to borrow a small sum of money (say $10 million) on a ten-year, non-amortizing basis. The lead bank would share the loan (that’s perhaps what the “syndicate” is referring to) and thus there would be a very strong, long term earning asset to contribute to (even smaller) local banks’ earnings profiles. Just a thought.
Doing community-based business makes good sense, provided the partner(s) is financially sound. CSX doesn’t have to play with the little guys, it chooses to.
Large banks take noticd when small banks are in the mix.
Large banks take notice when small banks are in the mix. This is healthy for all.