BB&T has long been a well-run financial institution. That success will be its demise as the sharks a surely circling the bait. Let us hope that fair value will be achieved in a buyout.
because that's what banks will come to resemble
more and more now due to the new legislation. You're
right that C has been doing all along what the new laws
will make official and okeydokey. Call it government
and its regulations catching up with reality. Or
waving the green flag to racing cars already speeding by
anyway (changing from a yellow flag) ... BBT has in its
smaller way been traveling the same path: buying
insurance brokers, Scott & Springfellow, etc. Expect more
of the same, much more. But now, for one thing, much
overlap and paperwork can be done away with, saving some
money. And customer data can be used more "creatively"
(watch out). And your bank/broker/insurance can offer
you more services, hence pick your pockets in more
ways, increasing profits. And as investment banks and
big brokers will want increase assets under
management, some just might want to buy a regional commercial
bank or two, no? And so on ...
Any of you intellectuals have any deep thoughts
about the effect of this new legislation allowing
insurance, banking, securities firms to merge?
has Citibank/Travelers been able to merge without
Glass Steagall Act limiting these
If Regulators have permitted combinations like
Citi/Travelers, in spite of Glass Steagall, what real benefit
will new legislation have on stocks?
As I understand it, index funds keep their investments balanced to the components of the index they are tracking, in this case, the S&P 500. Sooo, after all the funds that track to this index load up, the "abnormal" demand for BBK will subside. They won't dump unless the price drops dramatically to affect their % of the index. This doesn't mean that the stock will go up further, or down. We'll all see......