3-16 - • 2nd behind technology in of US Economy • Shift...

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
(3/16/2011) KBW- Scott Anderson- ‘How Banks Work’ Banking industry on new wave of consolidation Slow growth + higher costs + higher capital= lower ROE= consolidation How banks make money Regional bank- vast majority from Net interest income (around 70%) BOA= majority from NII, but more diverse (more emphasis with service fees, asset management, commissions from investing Lend-borrowed net interest margins decreasing yearly CRISIS- 2008/9 saw jump in nonperforming assets % TARP relief- $10 trillion invested Coming back, but still waaaay behind Financial Sector:
Background image of page 1
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: • 2nd behind technology in % of US Economy • Shift from % financial assets in just banks to pension funds, mutual funds, etc. • MASSIVE consolidation since 1985, top 3 share 1/3 total % • M&A • Real estate loans have become majority since 1980's • ROA/EPS decreasing for KBW/Banks in general • At cycle end, many banks are looking for consolidation for help as they are 'wounded' • Case Study: BB&T with Regions Bank Merger • Together would create #5 market share • Dominant presence throughout SE, Texas, • Would need capital raised, possibly too big/too risky portfolio...
View Full Document

{[ snackBarMessage ]}

Ask a homework question - tutors are online