Good post gg. In addition, the bank has diversified its revenue streams - doing much more cross selling and taking major market share from community banks - 6/8/12 wsj - "Small banks have been on the retreat for decades. The share of industry assets controlled by lenders with $1 billion or less in assets has fallen to a recent 10% from 31% in 1992, according to Federal Deposit Insurance Corp. data. Smaller banks had a lower return on assets, 1.22% for the first quarter, compared with 1.52% for those with more than $1 billion in assets, the FDIC data show."
I live in south carolina. My representatives - Tim Scott and Jim DeMint keep on talking about how increased regulation have stymied the housing recovery - banks will not make loans to home builders.
Nothing could be further from the truth. Adc loans are simply not financially justified.
I get a kick out of Tim Scott. Six weeks ago he was pumping gas at an exxon station west of the ashley telling his constituents that gas was going to $5 gallon and Obama has no energy policy. He should have been well aware at that time that gas demand was down by 5% while US production was up 6%. These stats were available to Tim Scott via US Energy Dep't but he was too busy bashing obama. Also oil/gas rigs have quadrupled since 09. Best energy policy is America is free market capitalism.
I wish I could take Tim Scott to the wood shed. Irony is that he criticizes europe but his policies would kill our economy.
To suggest that BB&T was lucky due to the fact they lacked the knowledge or sophistication to participate in "exotic" investments is simply an uninformed and inaccurate statement. What I'd say is that it was precisely because they did understand the risks involved they chose to avoid these products. I worked for the company for 30 years and over that period observed John Allison, Henry Williamson, Ken Chalk, Scott Reed and Kelly King. Now I'll have to say toosmart that judging from your posts alone you don't impress me as one who could go toe to toe with John or Henry. BB&T has grown from a $350 million eastern NC agricultural bank to $175 billion multi-state franchise. Other than criticizing this organization, what have you accomplished?
Since 2009 aggregate loans for small commercial banks are down around 16% or around $120 billion. Plus they now have to conform to basel 111 where their common equity has to exceed 4.5% of their risk adjusted assets plus they need a 2.5% buffer. That came as a big surprise today when the Fed made the announcement. I suppose the small guys can meet this over the next few year as their assets continue to shrink largely because they do not have products to cross sell.
But what do I know? I can't hold a candle to queenfooey, smarty, inlet and nobanker.
Scott, Demint and others like them understand - when the government spends money it is a taxble event as it has to be paid for through taxes (past, current, or future taxes). Seems to me that makes them prettry darn smart compared to many in DC.
My goodness queerfoo you're psychoanalytical skills are equal to your political acumen, ergo, ergo. You don't worry about any facts you just jump directly to your preconcieved notions. Now you've got me all worked up about your motives! But you have a good day now you hear.
Ok, greengrass, I will need to break it down for you. First you are probably just another username for Stil, Norm, etc. We have seen this all from you before. We know you love this company regardless of how poorly it performs. And why, because you were a "30 year employee" That just about says it all, another mediocre employee with decades of tenure in a mediocre company. Just put in your years and come out on the other end with a pension. They used to call that "working for the company store." Or in today's lexicon, it is like working for the government. Be a good boy, get patted on the head and we will take care of you, just don't show any initiative or rock the boat, ok?.
The fact is BB&T had no clue about how any of the securitizations worked, CDSs, CLOs, CDOs, NIM transactions. Zero. Zilch, Nada. And they did not want to know because that would entail hiring a huge cadre of expensive bankers that would unmask what a bunch of hayseeds they all are. But if someone came to them with an exotic way to lower the taxes paid at the corporate level, they were more than willing to swallow that hook line and sinker without knowing at all what they were gettign into.
If you recall back in '09 one of the bank analysts asked BB&T on a earnings call why they were not gobbling up all these distressed banks and the reply was "we don't know how to value their assets." Now if they are so smart, and not just lucky, they would not have ever said that.
And as far as growing the bank from humble beginnings, so what? I have seen companies do that all the time, just use your stock currency. Big deal
Norm - about time you acknowledged the value of other contributors to the board.
Update us on the economic growth (last I heard you thought it was great and going to improve). Sorry - unfair of me - you are buried in the minute details of BBT #s.
Others here - even though BBT continues to have decent #s remember 2009 when BB&T never posted a loss and still got taken out behind the shed and whipped. If we get a 20% or more market correction BBT will get hit - take that to the bank (maybe Wells- hehehe).
Personally I am short the market (RWM - Russell inverse ETF) for the time being. Lot easier to short an index than try to pick individual stocks to short as they may/may not be available to short.