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Tim Travis is a veteran deep value investor and money manager. Travis has extensive experience in traditional investments such as stocks and bonds, in addition to having a unique methodology of combining options and distressed investing with value investing to generate income, reduce risk, and... More
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T&T Capital Management
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Learn to Treat Your Portfolio as a Business
  • Biggest U.S. Banks Curb Loans As Regional Firms Fill Gap-Bloomberg 0 comments
    Jun 26, 2012 3:36 PM | about stocks: RF

    This article describes how many of the larger banks are curtailing lending and the regional banks are picking up the slack. This is a direct result of the Dodd-Frank legislation which has had the effect of reducing lending as banks are forced to horde capital, and shut down formerly profitable business operations. This is a big reason why the economy has experienced such lackluster growth even after the deep recession that we went through. Reducing credit at the worst time possible will likely be one of the worst legacies of this era of financial regulation. The regional banks are in an excellent position to provide financing on attractive terms as the big banks pull back. There are still some very good values on the regional bank side such as Regions Financial (NYSE:RF). These companies are insulated from the European issues as far as direct exposure, but the ramifications of a slowing global economy are unfortunately felt by all.

    http://www.bloomberg.com/news/2012-06-26/biggest-u-s-banks-curb-loans-as-regional-firms-fill-gap.html

    Disclosure: I am long RF.

    Themes: Banks, Financial Regulation Stocks: RF
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