Commerical loan defaults are just .78%. Now that is up from .66%, but I think you would have to agree it is not catastrophic levels.
I do not believe this level of defaults represent an unmanageable level for BB&T.
That's how the analysis of subprime started. As Bernanke stated, "problems with subprime are contained."
If you are smart, you would look at what is happening in the economy and do a little more extrapolation. You want to be ahead of the curve, not behind it.
0.78% = % of nonaccruals as a % of CRE loans?
Real estate secured loans collective comprise 69.9% of total loans, well above peer average of 53.2% and 57.3% and 2nd only to Regions at 70.4%.
C&I loans are 13.9% of total loans, below beer average of 23.3% and 26.4%.
The future is gloomy no matter what.
The latest rumor of M&A with Chase is cause for concern. Hope due diligence is practiced.
Prior rumor of M&A with Fifth/Third was very scary.
What is your point? Secured loans are the safest type of loans because they have real assets backing them. BB&T has used conserative underwriting and as a result writeoffs have been acceptable. They did no subprime and very few nodoc (altA) loans.
Unlike CC loans and to some extent auto loans conserative under written loans provide enough assets to guarantee a recovery of most of the loan value in case of default.
But keep up the bashing - I love buying cheap.
"NEW YORK -- Citigroup Inc.'s stock fell as much as 24% Friday to a new 15-year low, as the giant bank's board met to consider its options amid a deepening market rout.
Just two months ago, Citigroup was seen as a possible rescuer for a floundering Wachovia Corp. Now the bank, still freighted with troubled assets and facing mounting losses on consumer loans as economies around the world slide into recession, is facing a flight by investors worried it won't be able to stem its losses and turn things around."
"NOVEMBER 21, 2008, 2:30 P.M. ET
Citi's Fall Continues as Bank Weighs Options
Pandit Says He Has 'No Desire' to Sell Smith Barney
By DONNA KARDOS and DAVID ENRICH"
wow, look at numbie, copy and paste, whew doggies, btw el numbo, you lump BBandT, like always with those with proven factual failure, loss, layoffs, et al, and now with comm loss, did you ever take a looksee at where BBandT comm is geographically located?