So when interest rates go up and all their holdings in their securities portfolio lose value, and they have to start paying their depositors interest (instead of just taking fees), and they feel compelled to raise spreads on loans that borrowers cannot even qualify for today and hence will have reduced loan growth...tell me again why that's a good long term play?
Fact is this nation is never again going to dole out money to banks. When the bond and treasury markets' bubble collapses, which it will, a lot of banks will fail, some banks will not, but their share prices are going to be eviscerated. Did you know that the Fed's stress test did not include a stress on the bond or treasury markets as part of a bank's health? The Fed knows what the Achille's heel is, but will not admit it. I dont know when this will happen. A year? 2? 3? But it is going to happen, and in the meantime you might get a divi increase in BB&T and a move in the share price, but once the market structurally corrects itself....any gains will be wiped out and this stock will be back in the teens. remember, there is a difference between trading and investing.