Here are a couple more theories of why BBT can't survive, in addition to the "management succession problems" theory just forwarded by rw:
1) Tech spending. They are way behind now and getting further behind to their larger competitors every day. It would take hundreds of millions for them to catch up, and the shareholders would never recoup the expenditures. Tech becomes a competitive advantage to their competitors, and BBT sells because it can't be competitive.
2) The barbell theory: Customers want either intensive, "hand holding" service, delivered by very small, locally owned banks, or they want efficient (read: cheap) multi-channel banking delivered by the megabanks. There is no room for middle sized banks, who do neither of those well, in the equation. People who favor this theory scoff at the "community banking" model that BBT purports to follow, claiming BBT is just another big bank with different window dressing.
I'm not saying I subscribe to any of these. Most of them were thought up by bankers who were either bought or sold. In the end, the customers will decide.
While I agree with your assessment of the strengths of BBT one small correction.
It takes $203B to break into the top 10 banks (counting Citi). Fleet sits at #10 with $202B.
However $100 will get you to #11.
Thanks for your post Fan. I totally agree with your thoughts. It all hinges on JA and how long he keeps his team going.
I am very heavy with BBT but I would not move one share at this time. IMHO things are about to happen that I hope to be around to share in.
Max Crowe, Regional President, Atlanta Region has resigned after nearly 20 years with BB&T. He saw the writing on the wall that he was not going to be able to make it (BB&T) work in Atlanta. This pretty much sums up BB&T's expansion into major markets. It ain't going to work outside NC! That is one of the reasons that BBB&T is buying so much stock back. It is going to be the only way they are going to increase EPS like they have in the past.
Max Crowe, former President of BB&T Atlanta Region is now at Main Street, Atlanta's largest community bank. I wonder if things really are bad in Atlanta. I still would like to see BB&T build more branches in the metro area. I'm not sure how successful they will be with the limited number of branches. They can grow but will they truely be a major player? They have only a few branches in the midtown/downtown/buckhead area, among other areas in fulton and dekalb county. I'm still long but would like to see more focus in Atlanta....just my opinion.
Please provide evidence or proof of this claim. Not doubting you, but verification would be nice. Your analysis may miss the mark. Did he get a better offer, is health an issue, or does he want to just go fish? Why should we accept your assumption as gospel?
As for repurchasing stock, the banking industry as a whole does it regularly, especially those who acquire other banks. Deals are done in stock swaps, not cash, and the acquiror repurchases those excess issued shares over time. This is not some devious plot by BB&T management to dupe Wall Street.
I tried to tell you people this in earlier posts. Banking in GA is different than any other state in the Southeast. You dont bust into Georgia and bring your NC rules with you and expect customers to follow suit.
First Union learned that the hard way.
BBT bought a large Savings Bank in GA and Premier Bank. I suspect those banks (but dont know for sure) were loaded with less than perfect loans.
But BBT will adjust to GA. They will do fine, eventually.