CNB is to BBT what Countrywide is to BAC. Both banks have good leadership etc. but both companies exercised poor judgement with these acquisitions. BBT toed the line on all of its loans for the most part, and was solid. I was astonished they took CNB,especially with the banking environment at that time. Wachovia was the alarm bell for me, they bought a bank in California and when Wachovia collapsed, sold to Wells Fargo one of the Wachovia board members stated, I could not believe that people who could afford there mortgage payment would mail in their keys and walk away. He stated that is what sank Wachovia. Will BBT sink, I don't think it will, but it has a lot of downside going forward.
I thought this was an FDIC assisted acquisition with the FDIC taking the majority of any loan losses. How can BB&T be 'over-exposed' on CNB's loan portfolio? That transaction looks like all upside to me.
FDIC I believe back the loans at that time not all the mortgages. As time went by more mortgages went under water. Honestly, I got out of the banking stocks after CNB collapsed, I believed it was a gov rigged deal like countrywide with BAC. BBT leadership saw the depositors money and the foot traffic but did not recognize that many of those loans were at best marginal. Overall many other reasons with the banks. BAC CEO stated BAC owned 13.94 million mortgages, 6.4million had foreclosure issues which he said he would address over the next 36 months. Another report I read stated that there were 5 million homeowners in the country that had NOT made a mortgage payment in 60 months. Those are large numbers and indicate the banks are a long way from growth as far as stock price. Currently Obama is twisting arms to hold off on foreclosures till after 2012 election. Regardless of media statements the bank leadership and Obama administrations relationship is frosty. If the 5 large banks which hold 52% of the nations mortgages are reflected by BAC CEO statement of 6.4million foreclosures pending, I would say the regional banks have the same issues. I think bbt will survive, but the banks stocks are not where the money is. glta