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BB&T Corporation Message Board

  • jim56442 jim56442 Jun 8, 2004 11:58 PM Flag

    Who should bear the blame

    Maybe, this is too simple, but I keep reading these messages about which are the worst former FVB or BBT employees.

    The second question seems to be which executives made the decision which FVB employees to keep and in what jobs.

    The third question would be well just who made
    the decision to buy FVB?

    Isn't the real question why are the estimated profits so low and the results of the merger overall so bad?

    Now the answer is who should be blamed for the results?

    I would think the answer is simple the top executives are responsible. The buck stops where and the head honchos need to take the credit that is due them and that would be JA and crew wouldn't it?

    Just my opinion.

    Jim

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    • First time poster and former 10+ year BB&Ter. I agree that the real question is, "Why are the estimated profits so low and the results of the merger overall so bad?"

      Back in the 90's, the BB&T "acquisition model" worked extremely well, which was to acquire small thrifts and banks, and to indoctrinate them to the "BB&T way." BB&T was an efficient, well-run company and once the acquired organizations were brought up to speed, EPS grew rapidly. However, as the bank got larger, the acquisitions had to increase at the same pace to maintain the EPS growth trend.

      The problem as I see it is that the footprint of the bank grew beyond the ability of senior management to maintain control. JA and KK were spread too thin. They tried to place proven BB&T leaders in distant locations to put the "BB&T way" in place. Too many fires in too many places, and moral tanked everywhere. ProActiv helped deflate core market morale. Combined, this prevented the efficiencies from materializing in the new markets, and EPS hit the wall.

      IMHO, the solution is to sell the bank. The model doesn't work any longer, although the franchise is quite valuable. However, I doubt JA can give it up.

 
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