What has the above comment got to do with this board? This board hasn't been very active for a while but I'd rather it inactive than to have some totally irrelevant comment like this made.
As the cost of labor goes up, in this case the mandated increase in the minimum wage, companies will figure out how to use fewer employees. Many educated idiots do not under stand this simple rule. Easy examples: Gas stations no longer have attendants-cheaper to install self service pumps; take a look at Wal Mart almost half of the check out lines are self service; look at coal mines machinery has replaced 90+% of the miners; auto mfg-robots now do about 98% of welding and painting; etc, etc and etc.
Gov't in the private sector does not help employment, it hinders it.
Collusion between CEO's and B of D's. Think about it. Who appoints the CEO? B of D's. Who is most influential in appointing members to the B of D's? The CEO. It is a miracle if collusion does not exist between them . MO. These high salaries and benefits drastically reduce the amount of money that should be paid out as dividends or growth of the company. CEO's benefits run from 1,000 times entry level down to 50 times entry level income. Shame, shame and shame.
Like our leader in the white house Kelly King along with his incompetent executive management team lag behind other regional banks. Yet his appointed board keeps giving bonus for lack luster performance. BB&T definition of incompetence.
BBT's stock price per share is down from the price years ago and the dividend payment is also much lower than several years ago. I think the price per share currently is below the EOY 1998 price per share and the dividend is about what they paid in the early 2000's.
I'd bet money that Kelly King,other executives and the BOD is getting nice inreases even wih the stock price and earning results.
Wonder how they will justify the money they are getting now with bad earning results?
Corporations put him in office through PACs now they don't want the idiot. In other words, he was good enough for you, but not good enough for corporations.
Why Regional Bank BB&T Is Too Expensive and Should Be Avoided
BYRichard SaintvilusFollow |
10/15/14 - 12:21 PM E
Thought the following article as interesting especially after this earnings report.
NEW YORK (TheStreet) – BB&T Corporation(BBT) continues to spend money like there's no tomorrow, trying to appease shareholders' demand for growth.
If you think this is a buying opportunity, think again. These shares are going to trade in a tight range until the company shows it can produce enough of a return from the money it has spent on acquisitions.
BB&T's shares, at around $36, are off over 3% for the year to date and nearly 10% for the last three months. Shares were as high as $40.21 in July. Shares have fallen below the lowest analyst target of $38, so there's more room to fall. The company reports third-quarter earnings before the market opens Thursday.
Overcompensating for a low interest rate environment is a double-edged sword for the North Carolina-based bank, which has $45.7 billion in total deposits. The bank's balance sheet has already ballooned to a net debt position of $22.57 billion. By comparison, similar-sized regional banks SunTrust(STI) , Fifth Third(FITB) and Regions Financial(RF) have net debt positions of $11.44 billion, $12.65 billion and $77 million, respectively, all according to Yahoo! Finance.
A BB&T representative was unavailable for comment at press time.
BB&T recently acquired 41 retail branches from Citigroup(C) to expand its footprint in Texas, an important growth area for BB&T, which became one of the largest banks in the state, gaining more than $5 billion in deposits. Weeks later, BB&T picked off Bank of Kentucky(BKYF) , paying a 28% premium to become the No. 2 bank there. Bank of Kentucky has total deposits of $
Article today mentions 800 more employees or about 2% of BB&T's labor force will be laid off. Looks like the mortgage area will take a hit.
Some of the changes you mention are benevolent for the people. Morbidity and mortality experience among workers in the auto "paint rooms" and miners, especially underground coal, are very high. We need to find ways to provide job training and employment practices that improve job mobility.
Yes sir. Agree mostly. But with respect to banking, I'm not sure this practice is going to work well with big retail banks and other consumer retail stores such as Wal Mart. Gas stations are nearly mandatory as an automobile is necessary in America. A bank and grocery store are more of a matter of choice. Whereas I want to pump my fuel as quickly as possible, I prefer good customer service at a bank and store. BB&T is adopting a new method of retail banking called "universal branch staffs" which means a small number of employees in the branch that can discuss a loan while processing a teller transaction.. basically the goal is for the now 2 or 3 people there to do it all. I don't know if this will work well for the future, but what do I know. FWIW, I have switched from a big bank recently to a small community bank in my town after being fed up with lack of customer service and long waits on phone calls. I'm happy with my decision.
Paradigm shift in the processes that are applied to manage financial activity.
14 years ago I moved EVERY thing to a financial services company that started life as an insurance company (I have carried their insurance since 1968) and has grown impressively in the breadth of services provided to members.
I have never even seen the physical location of my bank.
All transactions are now online with a rare reversion to snail mail - they are mailing a new window decal, and never any need for physical presence. Deposits I make from the chair in which I am writing this post, using the scanner next to my computer. There is a size limit for online deposits but I have never come near it. It was $10,000 but I think that has been increased to $20,000. Should I ever have such a large deposit it will be very easy to make, easier than going to a physical location of any bank - any UPS office will handle it for my bank.
The bank is member owned, its business focus is to provide members with highly efficient, totally trust worthy services. Likely this places it in the forefront of seeking the most efficient means of filling member needs, but there is nothing magic about member ownership, every bank can do it although the margins will be smaller. I guess the banks which move first will end up with the largest customer base and those which delay will be playing catch-up.
There will always be some individuals at both extremes, the poor and the rich, who need or demand personal banking. Many of the poor do not have bank accounts, something needs to be done to help them, the sharks are feeding on them. The rich already have personal banking and pay a pretty penny for it, but that penny is generally a small percentage of their total assets.
The layoffs are alarming to the employees who will have to find other employment, and there will be some shakeout in the banking industry as they juggle for position, but the bottom line is that it will be better for us all.
In the summer of 2013 they cut a number of the retail staffs in the branches. Instead of having one branch manager, you now had a branch manager to 2-3 branches. The problem I have with this stupid company is their unwillingness to be more aggressive in loan policy. I've never seen a more snobbish bank that claims to be a community bank, yet does nothing for its communities.
I honestly believe Kelly King and company are sucking their thumbs at this point looking for someone to buy them or merge. They want to advertise as a big bank, yet won't take on $50MM-$100MM credits. They prefer $1-10MM credits. On the retail side, they increase fees if you don't have a direct deposit of a certain amount or you don't keep a minimum balance in your account. It really is a terrible bank and I don't know why anyone banks there.
Understand BB&T is laying off a good number of employees. Does anyone know the extent of the layoffs and where the cuts are coming from? Sure hope the ex-employees can find other jobs quickly.