Big Al45

BB&T-Colonial Deal Illustrates It's the Big Bank Chiefs Who Win Again

What are the details of the loss sharing agreement with the FDIC regarding CNB's assets?? This should information should be disclosed in the prospectus for BBT's secondary offering, but, somehow I doubt that it will be.

The $15 Billion in CNB "assets" covered by the loss share agreement are probably worth $8 Billion, at most. So, how much of the $7 Billion loss will BB&T shareholders have to take?

I imagine BBT's share of the loss will be a whole lot more than the 750 million BBT is raising though this secondary offering.

This deal has a certain stench do it - like the BOA - Merrill shotgun marriage. Did Sheila pull a Paulson and threaten to fire King?

Lehman Brothers Take-over: Implications for Financials

The so called "peer group" does not provide a meaningful comparison . Lehman has very little in common with monoline insurers, Business Development Companies, and regional banks that don't have significant off balance sheet exposure. Their asset mix (and risk exposure) is considerably different than that of investment banks like Lehman.

The comparators should be limited to other investment banks and the large money center banks (such as BAC, RY, DB, TD, UBS.)