That is the headline of a Morningstar article. It seems that depositors are willing to accept lower interest rates on their money from strong banks in exchange for peace-of-mind safety and security. BBT is on that list and has a 5 star Morningstar rating. This benefits the strong banks by widening the spread between deposit and loan interest and thus, the bottom line (profits). Another article pointed out that Wall Street is beginning to differentiate the banks into two classes (weak and strong) as far as stock pricing. Those in the know will pick the weak banks to short. The strong ones should regain their "pre-sell off" popularity causing a relatively quick recovery in their stock price.
nobankers, hang in there, after all there's got to be a few around here with a few functioning brain cells or am I being too optimistic?
Hmmmm, did you notice BBT following on BAC's coat tails today? LOL.
What a group, it's sad really that more folks can't think or reason more objectively.
How about the "Go BBT" group, I can't tell whether this is a ball game or the stock market.
>>PNC is trading at over 12pe of 09 earnings-- BB&T should trade for at least this 3x12=36---go BB&T <<
Shoulda's, woulda's and coulda's, I sold my position Friday at the exact high (to the penny), how about you?
>>The strong ones should regain their "pre-sell off" popularity causing a relatively quick recovery in their stock price.<<
Yeah right and the housing debacle (defaults), excessive debt, and leverage crises facing this country will just all suddenly disappear.
I hate picking on guys like you who are so filled with blind optimism, but honestly what color is the sky in your world?
Good grief............oh and one last question, do you actually believe that banks print money?