BB&T announcement: "BB&T posted solid first quarter results as our credit costs continued to decline and economic conditions improved. For the second consecutive quarter, we saw improvements in all measures of credit quality. In particular, we experienced significant declines in past due loans, to our lowest level in three years. We continue to make progress in the diversification of our balance sheet. We experienced healthy growth in average C&I loans of 8.7% on an annualized basis compared with last quarter and we further reduced our exposure to higher-risk real estate. We also saw growth in total loans this quarter, including the mortgage and auto loan portfolios."
ABSOLUTE CRAP....STOCK TANKS. NO GROWTH. SOLUTION - MAKE LOANS, COMPETE WITH THE STREET. FIRE THE ELMER FUDD'S IN YOUR CREDIT DEPT AND YOUR ALCO. QUIT LIVING IN THE PAST.
Now, Now Nobank: You're accusing BB&T of living in the past. Don't forget, one of KK's visions is something he calls reintermediation, which I think is a euphemism for returning to the past. You might scoff at this concept being visionary but it depends if you drive (or lead) looking through the windshield or the rear-view mirror.
I read Richard Bove's short note regarding BB&T (and others) this morning and frankly I am more concerned about BB&T venturing into the world of syndicated credit (particularly as a lower tier participant) than I am the validity or lack thereof of reintermediation (personally, I just don't believe money-market funds and bond funds are going away). I believe that the community banking model suits the strengths of current BB&T management much more than a national platform providing credit services to large companies.
So which one is the ostrich---BB&T or Kelly King?? I still cannot believe the timing on the raise/bonus package or the incredibly arrogant message that it sends to bank employees and shareholders as they and their families suffer through very challenging economic times while watching the both the value of their investment and the amount of the dividend decline....
tdj352: You're right of course, BUT your frustration should be directed toward the Board of Directors who approved these packages. Under current proxy rules, your displeasure can only be expressed by what amounts to a symbolic withholding of votes for Board Members (either collectively or individually). You cannot vote against Board Members and there is no minimum vote required for electon. As a result, one single vote in favor of the election of a Board Member is all that is required for his or her election even if 600 million votes are withheld. As I'm sure you are aware, there are only enough candidates nominated as there are open seats. So no losers, only winners in elections of BB&T Directors. Bottom line, the Board is a Club. If you are nominated you win. No term limits, no election opponents. Of course there is this nasty little Directors' liability issue that could haunt you in the event of very unlikely circumstances (in the case of BB&T).