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ProShares Short KBW Regional Banking ETF (KRS)

  • Nov. 12, 2014, 11:03 AM
    • Regulatory headwinds in banking are "plateauing," says BB&T (BBT -2.5%) chief Kelly King, appearing on CNBC after his bank's agreement to purchase Susquehanna Bancorp (SUSQ +32.1%) for about $2.5B. The issues being talked about today are quickly become yesterday's news, he says.
    • Speaking with analysts/investors on a conference call, King says the two lenders had been in talks for several months. One wonders if the deal's announcement one week after last week's Republican landslide is just a coincidence.
    • BB&T, says King, is very interested in other opportunities, but naturally the price has to be right. Texas? Not interested, he says, as those lenders are asking 2x-3x book (SUSQ looks like it's being purchased for about 1.7x tangible book).
    • A move further up the East coast? King says BB&T could eventually move into NYC and Boston, but for now will focus on the Mid-Atlantic and Southeast.
    • Possibly helping to push Susquehanna into a sale (and no doubt on the minds of other smaller lenders) are the compliance costs associated with the Bank Secrecy Act and Anti-Money Laundering rules, and King notes SUSQ can now fold those costs into BB&T's.
    • Previously: First Niagara on the move after BB&T/Susquehanna deal
    • Regional and small-cap bank ETFs: KRE, KBE, IAT, KBWB, RKH, QABA, KRU, KBWR, PSCF, KRS
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  • May 24, 2013, 7:11 AM
    Remember M&T Bank's (MTB) proposed purchase of Hudson City Bancorp (HCBK)? Regulators have put the merger on ice and it's sending a chill through the executive suites of other regional banks (KRE) who were considering doing deals, but now figure it's not worth the regulatory scrutiny. In the past, conditions such as we're in - slow economy, weak loan growth - have prompted waves of bank mergers (it's happening in community banks). "I am not buying another bank for as long as I can see," sees one unnamed top executive. 
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KRS Description
This ETF seeks a return of -100% of the return of an index (target) for a single day. Due to the compounding of daily returns, ProShares' returns over periods other than one day will likely differ in amount and possibly direction from the target return for the same period. Investors should monitor their ProShares holdings consistent with their strategies, as frequently as daily.
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Sector: Financial
Country: United States
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