and Kelly King will take his position. John is 60 and Kelly is 59. Seems strange that John is retiring at such an early age and his love for BBT. Even the branch employees didn't know. As one would say, "too funny."
Before there are write-downs and hits taken, doesn't BB&T have to have the losses that come with exposure to the sub-primes, Freddie-Mae, Fannie-Mac, etc. WAIT! BB&T is conservative and didn't go there. No exposure! No Multi-Billion writedowns!
The thing that would scare me the most is a Cramer endorsement.
On a more ethical note. Would you consider it fair to have the Government subsidize (bail-out) a bank which has already taken the rewards (fees) of high-risk loans/investments and give no credit or aid to the conservative banks with effective risk management programs in place?
if they had effective risk manahement in place credit officer would not be getting launched and their losses are not coming from housing as much as it will be coming from indirect automotive lending......like lending 140% on those new pos v8 trailblazers for 35k that are now worth 13k at auction...plus paying a dealer 3% in reserve on top of that....crazy....thats where the hit is coming....when your cost of funds are 4% and you lend money at 5% and take dramatic increase in chargeoffs and repos lots of money lost......hits coming 3q report
BB&T said it is committed to remaining independent, but Allison and King in interviews said the bank is well-positioned for the "merger of equals" it has long sought, in part because its shares have fallen less than many rivals since the U.S. housing and credit crisis began.
Through Tuesday, BB&T shares were down 8 percent this year, while the 24-member KBW Bank Index .BKX had slid 30 percent.
"I think an MOE would be wonderful," King said. "You could consider an out-of-market MOE, but it's best in-market because of the consolidation and cost-saving opportunities. I'm not going to be building my future strategy on building an MOE. But if the question is, 'would you like to do one, well, yes.'"
Update-Longtime BB&T CEO Allison to retire at year end (Reuters, Wed. 1:33p.m.)
This is my first time replying to your message, even though I have been following this board for approximately a year. I've gained quite of bit of insight from you'll, and I appreciate everyone's perspective.
That being said, I happen to work for BB&T and I was recently privileged to be invited to a brunch hosted by John Allison, Kelly and King and other Execs. It was their tour through all of our regions, giving us an update on how things are going with the company, questions we wanted to ask, and giving us accolades for various accomplishments.
J.A. was suppose to lead the brunch, but he didn't make it because he was REALLY ILL, according to KK (who ultimately led the meeting), and that this wasn't the first stop on their tour that he missed because of his on-going illness.
Like I said, I'm new to the board, and really a novice with investing, but thought I could offer a little insight from my perspective. Thank you guys for all of your great posts!
hey "you aready know profile" good story about the brunch, etc.. but paper says allison staying as director till end of 09. it seems a sudden illness is not the reason for retirement. the paper also stated that the credit manager(chalk?) is leaving this friday. i think your story would be better if you said chaulk was ill.
BBT execs know better than us that the timing of this retirement will bring many questions. I think the retirement is telling investors that write-downs are coming. The bad news had been delayed in hope of a turn around in the economy and that will not happen in time. Also, its too late now to say its a health issue.
Little do you know! What in hell is strange about being successful in life and retiring to enjoy your remaining years. I retired even younger than that and do I ever enjoy life and the rewards of 40+ years of $$$$ BBandT has made for me, plus I can play around with my hobbies and business interests, one of which drives ole chandler up a wall. Hint, just stick around and watch Kelly, one of the original 5. Big stuff down the road.
You are entitled to your opinion, just as I am entitled to find the timing interesting. You used the word "sreange" not me, so you must find it "strange".
I could care less when and what age you retired at, it has nothing to do with the subject under discussion. Some of the rest of us retired prior to 60 also and when I retired is not relevant either.
And, "big stuff down the road" can mean anything including writeoffs. Want to be more specific or are you just speculating?
Does make one wonder about the timing, doesn't it? What we often see is when a new person takes the helm is he writes off everything he possibly can find so he starts off with no baggage from the prior regime. So are we looking at big writeoffs in Mar/Apr of 2009?
Regardless, BBT is trading between the 50 day and 10 day MAs the past few days. The 10 day is moving down now and the range narrows as it approaches the 50 day MA forming what is commonly called a triangle. At some point as the range narrows it has to break out. Given this news (and other recent negatives for financials) a breakout to the downside seems to be more probable (under $26.90). If that happens then expect a sharp sell off to arlund $24.50.