CHARLOTTE -- William Shipley inherited Bank of America stock from his father and watched as Charlotte's banks boomed, becoming as much a symbol of the city's success as its gleaming skyline.

At one time, his 3,000 shares were valued around $180,000. Now, they're worth less than $20,000. Shipley's dividend payment this year will likely be around $120, down from $7,200 in 2007.

"Everyone you talk to today has been affected," said Shipley, 76, a retiree who ran an insurance business. "It would be a lot easier for me to say it's going to work out well if I were in my mid-50s."

Charlotte, known for its thriving financial services sector, is reeling from a global banking crisis that has eroded the city's wealth and chipped away at its identity.

Residents cringed as Wachovia crumbled and fell into the arms of Wells Fargo. Then, Bank of America's stock price and dividend plunged to historic lows.

Last week, Bank of America's stock value was around $42 billion, down from around $183 billion in 2007. This year, the bank is expected to pay around $254 million in dividends. In 2007, it paid $10.7 billion. Both banks are laying off thousands. For those who survive, bonuses likely will be modest.

But the financial consequences of the banking meltdown reach beyond those directly connected to the big banks. From law firms to restaurants to retailers, the loss of bank jobs, stock value and rich dividend checks has led to rising unemployment and shattered bottom lines.

The damage extends to charitable giving, which is waning at the same time the value of once-substantial university endowments is plunging.

The fall in Bank of America's stock price and dividend has reverberated through the community of former executives and employees, many of whom had accumulated large holdings. The hit affects mountain and beach communities, where some moved in retirement, but is centered in Charlotte.

Will the downturn cost Charlotte its image as a glittering town full of promise and prosperity?

"Charlotte has been riding high for two decades," said Mike Walden, an economist at N.C. State University. "This is a shock."

Bank jobs going away

Financial services companies have, for years, dominated Charlotte's paychecks. The sector accounted for more than one-fifth of Mecklenburg's private wages in 2007, paying out $5.6 billion, more than seven times the 1990 amount.

Charlotte grew wealthier, too. By 2007, Mecklenburg's median household income had jumped to $65,700, far higher than surrounding areas and the national average, $50,230.

Now, the city stands to lose many of its highest-paid jobs at a time when Mecklenburg County unemployment is 8.3 percent -- the worst figure in years.

Wells Fargo plans to start cutting redundant positions this year, but it hasn't provided details. Bank of America is in the midst of cutting up to 42,500 jobs as part of its Merrill Lynch and Countrywide Financial acquisitions. The cuts, some in higher-paying investment banking positions, already have started hitting Charlotte and elsewhere, though the bank is not disclosing local numbers.

"All people are doing right now is interviewing (for other jobs)," said one Bank of America employee worried about his job. "They're not spending any time picking up a phone, really. There's no incentive to."

Both banks are slashing employee bonuses, which can make up a significant portion of workers' annual income. That's been a particular sore point inside Bank of America because Merrill CEO John Thain hurried out bonuses to Merrill's employees before the deal closed on Jan. 1. Bank of America CEO Ken Lewis and his top reports aren't getting bonuses for 2008.

Meanwhile, shareholders' wealth is crumbling. Wachovia shares slid nearly 85 percent last year, and the bank's annual dividend fell to $1.12 per share in 2008 from $2.40 per share in 2007, when the bank paid $4.6 billion in dividends. Wells is still paying a healthy dividend, but in the takeover, Wachovia shareholders received one fifth of a Wells share for each of their Wachovia shares.

Bank of America shares closed at $6.58 on Friday, down 80 percent since September, when the bank announced plans to buy Merrill Lynch.

"People are absolutely livid," said one former executive. "... I lost one-third of my retirement income. It's not replaceable."

Major shareholders hit

Bank of America's biggest individual shareholders are C.D. and Meredith Spangler, a Charlotte couple who own 32 million shares within their family and other entities.

C.D. Spangler, a businessman, investor and philanthropist who is a mainstay on Forbes magazine's annual billionaire list, gained his first shares in the bank in 1982 when he sold a small community bank to Bank of America's predecessor. Meredith Spangler is a board member.

Their stake was worth $210 million as of Friday, down from $850 million in September. The Spanglers' dividend this year will likely be around $1.3 million, down from $76.8 million in 2007.

Another major shareholder is likely former CEO Hugh McColl Jr., who retired in 2001 after turning the former North Carolina National Bank into today's coast-to-coast Bank of America.

At the end of 2001, according to a proxy filing, McColl had nearly 2.8 million shares, including options to buy company stock and restricted shares payable over 10 years. Bank of America shares split in 2004, which could have doubled that number. But it's not clear how much he still holds.

McColl has not returned phone calls seeking comment. He told The Wall Street Journal he remains supportive of Lewis.

As he turned the company over to Lewis in 2001, McColl said, "...I'm going to join the ranks of shareholders who'll be looking for dividend increases and (earnings per share) gains. I know you'll give them to us. I have great confidence in you and your team."

Jim Palermo, 67, a retired Bank of America executive vice president, said he and his wife have seen about 20 percent of their "paper value" disintegrate recently.

"I'm a retired Bank of America executive, and like many executives, we have portfolios tied to the companies we worked for," he said. Bank stock "became an integral part of wealth building."

Those losses have hit thousands of others, from retired bankers to employees to residents with a stake in the banks, Palermo said.

"The ownership of a community organization is something we've all shared," he said. "... In general, the banks have a major, major influence."

For Palermo, the loss in stock value and slashed dividend, which he was reinvesting in bank stock, hasn't been catastrophic.

"I continue to live my lifestyle," he said, "but it's a little more cautious."

Palermo is optimistic about the future. Charlotte has a diverse economy, strengthened by its healthcare sector, education and other areas.

"I don't see people out there with their heads down," he said. "The world is all in somewhat the same boat, and as the world gets back, we will get back."

Retirement worries

For investors like John BurkeÖ of Salisbury, the banks' troubles have led to a less comfortable retirement.

Burke, 75, invested in Bank of America and Wachovia about five years ago.

"If anything," he said, "it was going to go up. It was a retirement investor's dream."

But last year, Burke sold off most of his shares. He wouldn't say how many, but he and his wife are already making small lifestyle changes, such as booking a cheaper cabin on the cruise they're taking next month and scrapping plans to replace Burke's 10-year-old Saturn, he said.

At one time, Burke considered reinvesting in Bank of America when the market turns around. Now, he's lost faith in its leaders, he said.

"If I want to gamble," he said, "I know how to get out to Harrah's."

Charlotte investor Chuck Johnson, 45, lost money on Bank of America and Wachovia, though he declined to say how much.

"It's terrible," he said of the banks' fall. "Isn't that the identity of Charlotte?"

Effect beyond the banks

Experts warn of other ripple effects of the banking tumult. Law firms that do business with the banks, for instance, have already seen waves of layoffs.

Walden, the N.C. State economist, said consumer spending will likely shrink. For every $7 decline in personal wealth, there's a $1 drop in spending, a rule known as the wealth effect, he said.

That could especially hurt businesses that cater to the wealthy, such as La Concierge, a personal assistant service, said Lashawnda Becoats, who started the company in 2006.

At the time, Charlotte seemed full of executives willing to pay someone to shop for groceries or pick up dry cleaning. Now, many of those executives are running their own errands, she said.

"People don't have any disposable income anymore," said Becoats, 37, whose service has four regular clients. "People are still living, but people are really cutting back."

Some of that is psychological, pulling back out of fear of what could happen, experts say. Walden said some businesses contemplating a move to Charlotte will likely pause, too, waiting to see how things play out with the banks.

Despite the hurdles, some experts remain bullish on Charlotte.

UNC Charlotte and the planned biotech campus in Kannapolis will be assets, as is Charlotte's location, experts said.

Even Becoats, the personal assistant, has hope - after all, there will always be people who don't feel the pain of a recession, she said.

"For the average person, we're on the forefront of losing our job, but when I'm out shopping, I still see women in mink coats, and there are still people who will go into Louis Vuitton and spend $2,000 on a bag," she said. "I know the economy will change, and I know I'll get more clients. I just don't know when."

Meantime, wealth management firms continue fielding calls from worried investors.

"It is concerns about the general economy and how the downturn is going to affect retirement," said Larry Carroll of Carroll Financial Associates Inc. "People realize that things that are bad for Bank of America and Wachovia are bad for Charlotte."