I am not sure they did, I think the deal that was struck with CNB was the mortgages in trouble at the time. Overall though, I continue to watch the bank stocks, some might come back, but really the gains are currently quite marginal. I own some aapl by comparison, it went up over 25 dollars the last 2 days more than this stock sells for. While aapl currently has the limelight, there are plenty of others that have doubled or tripled since the bottom. Look at GE it was 6 now over 18. Wake up, the banks stocks returns suck.
While I can appreciate your concern c1smittycc for continued mortgage loan deterioration, I think you rationale for suggesting that CNB's mortgages will "nonperform" in lockstep with BAC is flawed. Granted, CNB did not have the same loan underwritting standards as BB&T but to suggest that their asset quality will deteriorate because BAC's is detreriorating is not a valid argument in my view. And one final point, I was unaware that the FDIC excluded mortgages loans from their loss sharing program.