I have been puzzling why this stock is getting pummeled, even past what has happened to WB and BAC. They don't have subprime, or CDOs, or SIVs, or any of that crap. Most of their mortgages are sold in bulk to Fannie or Freddie; their Special Lending Unit accounts for about 1% of all revenue.
But inside the commercial loan books are BILLIONS of dollars of residential construction and real estate development loans. THAT is why this stock is getting killed. The ultimate payoff for those loans is the sale of a house--and we all know how home buyers are feeling these days.
I've been toying with buying here, but I think I'll wait and see...
The only problem I see with BBT and and financial stock is that originations (and the associated fees) will be down.
Yes, other banks have other problems, but this is BBTs only real problem. Yes, it will probably cause a SHORT TERM slow down.
I fear you need to get a life...people bitched about caps 20 years ago. It was just a bitch then when people first got on the internet. Next you will tell me it hurts your eyes..........lmao...ghezzzzzzzzzzzzzz....grow up
Sorry I don't watch talking heads on TV. I try to stick to doing my own research and RE markets in places like Charlotte and Triangle, NC and Richmond, Va had good years. Northern Va and Wash DC is so so. Commerical RE is still doing well. How do I know? I have done the research. This is the core of BBT's market area. So what the hell does builders who bet the company in Fla, Az, Ca, Nv have to do with BB&T and their loans?
Sure RE sucks in other places like Mi and Oh but they are bleeding high paying manufacturing jobs and people are moving elsewhere (no population or wage growth). Again - not BBT's market.
This is definitely getting down to a "sale" price for this company. Non-dollar denominated buyers must be wetting their pants at this price. The Arabs moved to quick on Citi, or maybe Citi was just really really sharp and saw there was still a lot more blood to let. Something has to give here sooner or later, people who thought the bootom was at $36 have been obliterated.....no end in sight
...have you seen any real data on the level of these loans? I went browsing through the 10Q last night but couldn't find it. Seems to me that used to be broken out, but I can't swear to it. There is a lot of detail in the filing but nothing that says "here is how much we have in construction loans and here is how much we have in real estate development loans."