Noticed Mr. Golden Parachute, Glenn Orr is off
the board. Was this a friendly parting or something
else? I will miss him. He was my inspiration to aspire
to greatness or a reasonable facsimile thereof.
Part of my post about IS personnel was in jest. I
actually own a few that I like a great deal. The purpose
was to just declare that I am sick of hearing about
it and to express faith in the business community to
solve the problem quietly. Many if not most companies
already have their plans in place. We keep hearing about
it because no career-minded CEO on Earth would
pooh=pooh this hot button issue. They have to act like it
is THE most important issue facing mankind because
the media has mandated that they must. Its
On second Qtr earnings, I'll take 20+% ROE every
year for the next twenty and start planning my
retirement at age 55. There are no holes in the earnings
stream now. To all my former colleagues, I say make me
SunTrust / BBK....interesting. Unfortunately no
branch cost savings since no overlap. But it would
create a SouthEastern Powerhouse. Huge marketshare from
NC South. STI could learn expense control from
Allison's efficiency ratio success,(BBK: 50%, STI 60%), and
both company's could use the others distribution
networks for their niche markets: STI - Trust, BBK -
mortgage and insurance.
Frankly BBK "looks" like a
better managed company, but STI has the silverspoon
Looks alot more appealing from an l/t investment
perspective than say BBK & SOTR. BBK could become tainted
with SOTR's weak ROA, ROE and high efficiency ratio.
Combined with a recession, and there goes the
?? Just my opinion.
Glenn Orr rode in to Lumberton a dozen or so
years ago with the sole purpose of raiding the till.
Every decision was made to dress up the balance sheet
for the ultimate payday. That payday turned out to be
for him only. The merger of equals did not
immediately reward any shareholders, but Orr got his 20+
million. How can anyone call this greatness. This country
must stop measuring greatness by the number of digits
in our bank accounts. What about duty to community,
employees, and shareholders. Lumberton got screwed, the
merger of equals was a joke for employees, and we will
have to wait and see if the shareholders are
Readum, you are "right on" with your assessment
of the Orr situation. While the merger of "equals"
was a little more equal for BBT, wonder if the time
is right to do a real MOE with Crestar before Y2K
becomes more of an issue. Your thoughts??
Many of your observations ar
right, but Orr only took a fraction of the wealth he
created for the BBK/SNB employees (401K's/Options), and
shareholders throughout the Carolinas. Many folks in
Lumberton, Wilson, etc. are much better off today for the
merger. Orr and Allison made a solid play, and one that
is reflected in returns far outpacing most of the
industry. By the way, what do you think the chances are
that either BBK or SNB would be independent today if
they had not merged? Their signs may read "Bank One",
or, their financial performance today may look more
like that of their less stellar competitors in the
Carolinas. I think I'd rather have a 1 yr. 52% return, and
be sitting on shares in one of the highest
performing banks in the country.
Orr looked out for
#1, but the returns rubbed off on alot of Carolina
folk along the way.
Just my opinion!