Banks Stressing the System vs. Potential Winners of the TARP Repayment Race [View article]
observationalist: An excellent point. John Allison, former CEO and current chairman of BB&T, has made a similar point. Basically, he said that they can't give a loan to anyone who doesn't apply for one, and many of their commercial customers are so scared about the economy that they are not applying for new loans.
So we should buy these banks because the government guarantees their continued existence? That didn't work too well for Fannie and Freddie shareholders. If you're going to buy a bank, why not buy a well-run, solvent bank like BB&T or Wells-Fargo, instead of one that would be bankrupt were it not for government aid.
Banks Stressing the System vs. Potential Winners of the TARP Repayment Race [View article]
Time to Buy Bank Stocks [View article]