You seem to be knowledgeable on tech spending. Care to respond to EBITDAHA's statement that the bank is "spending tens of million" on technology even as we speak? How about taking a stab at what they SHOULD be spending?
Lets address the issue of technology spending as an expense item. Its CAPITALIZED....not expensed! Therefore it does not impact the efficiency ratio in the year it is opurchased...only later as that expense ie depreciated.....jeez! What part of this don't you get bbtnomore?
bbtnomore didn't write that message, xbbter did.
Technology spending is NOT all capitalized. Most banks do not capitalize, for instance, personal computer purchases, as the useful life of a personal computer isn't long enough any more to justify capitalization. Ditto the software that goes on personal computers and most other PC hardware. Ditto the salaries of technology professionals.
And to the extent that tech spending IS capitalized, it is depreciated and still shows up in the efficiency ratio.
I know these essay questions are hard for you, so let's try multiple choice: Bank A spends $100 million on tech, all capitalized, depreciating straight line over 5 years. Bank B spends $300 million, same capitalization and depreciation schedule. If the rest of their non-interest expenses are the same, which bank will have a lower efficiency ratio?
That's right, Bank A, because they'll be taking $20M in tech expenses to the income statement while Bank B takes $60M.
Skip the accounting lesson for a second--do you honestly believe that technology spending has no economic impact on a bank's reported efficiency? Whether expensed and taken up front, or capitalized and taken over time, tech expenses hit the efficiency ratio and the bottom line.
What part of simple accounting don't YOU get?
With all due respect, rwmgn, my concern at the moment is not about the markets and the price of BBT shares. My concern is about the future of civilization as we have known it in America for the last 200 years.
No ill will intended to you.
Let me assure you my good man there is no one on this earth more concerned about the poor citizens of this country that have been killed and injured than I am. I lived through WWII and served in the U S Navy. Yes, we are up against a different kind of enemy today. I do prey our government officials find the answers and do the right thing.
I take it you were bothered by me asking a simple question about the market at this time. Now, take a minute of your time and think what it would do to this country if we had a failure of the market at this time.
I DO NOT BELIEVE MY POSTING WAS OUT OF LINE.
Your reply saying only "pompous ass" was directed to rwmgn, isn't that correct?
I noticed, too, that yacob_smirnoff did say that he intended no insult to rwmgn. Yacob's post was not offensive, imho.
I just hope America has the stomack to do what is required to eliminate terrorism. A harsh problem that requires very harsh solutions. All terrorists must be "eliminated". Do you think we have the stomack for it? I have.
America, and the rest of the "free world", now have no choice except to eliminate terrorism. There are no other options, if we wish to remain free and not live in a state of seige which, like cancer, would eventually kill us. I think Americans will hunker down and get the job done. I now see even young Americans in shock.........those young adults who were not alive when Pearl Harbor was attacked, and who think Viet Nam is a type of sushi. I think they will now abandon their self-glorification and self-centeredness and pull together for the good of America. They, too, have no choice because the alternative is slavery under the terrorists. The terrorists may have the WILL to win, but they do not have the RESOURCES to win.
Personally, I am just happy that we have people like Colin Powell in important jobs like Secretary of State, rather than insipid Democratic groupies like Clinton's first secretary of state, Warren Christopher..
I am worried a bit about the state of readiness of the US military. Clinton cut back so much funding to the military. You may remember that the Apache helos the US sent to Bosnia never flew in combat because of the lack of maintenance and spare parts. (Although the Apaches had an excellent combat record in the Gulf War.)
GOD BLESS AMERICA.