Can anyone paraphrase the below article for the board. I am not trying to pirate the column as I see this is a paid subscription. More importantly would like to know how the board reads this article for the macro banking environment and BB&T.
BB&T does not owe Tarp money, nor do they have any exposure to Mtg loans that have to be bought back, and no International banking at all. They will experience flat earnings, and little opportunity for growth. The only and best place to grow net income is expense reduction. Which they are ripe for. Their Community Bank structure is EXPENSIVE to operate with little real value. You could cut most of the RP's. RBM's , and the BOM's That would be a start.
Conversely, we continue to recommend a basket of over-capitalized regionals operating in reasonable growth markets -- PNC Financial Services Group (PNC), Wells Fargo (WFC), BB&T (BBT) and Fifth Third Bancorp (FITB) --companies that are trading near their lows, but are better-positioned for potential catalysts to move 2012 estimates higher."
This information was written by Sterne Agee.
The information supplied by sbolc69 "they will experience flat earnings and little opportunity for growth" is not in the Barrons' article.