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MrLSU
LSU Fan
Baton Rouge
Member since Jan 2004
1826 posts

Time to sell your interest in any Bank stock which has less than C- rating


The FDIC was instructed last year to hold off as many bank failures as possible until after the election. There are at least two dozen banks in Louisiana who fit this category who will going to be taken over in 2013 or forced to sell. Ratings of less than a C- or those under federal consent decrees right now should be avoided at all costs.

If you have more than the federally protected limits in a banking institution (Banks and/or Credit Unions) with less than a C- rating I would start planning accordingly so you don't encounter any problems down the line. This is especially important for businesses who keep large amounts of cash on hand. The consolidation of the US banking industry is going to be unlike anything we have seen since the 1980's.







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SLafourche07
New Orleans Pelicans Fan
Member since Feb 2008
1250 posts

re: Time to sell your interest in any Bank stock which has less than C- rating


They will going to be, won't they?





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bryso
Clemson Fan
The Real Death Valley
Member since Dec 2006
27045 posts

re: Time to sell your interest in any Bank stock which has less than C- rating


quote:

The consolidation of the US banking industry is going to be unlike anything we have seen since the 1980's.


link






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Tiger4Ever
UTEP Fan
Member since Aug 2003
35647 posts

re: Time to sell your interest in any Bank stock which has less than C- rating


Uh...no.

Consolidation will take place due to regulatory hurdles couples with aging boards/management teams....but their aren't two dozen or more banks in Louisiana to be "taken over" by the FDIC.

And where are these ratings you are referencing coming from?




This post was edited on 11/7 at 9:34 am


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MrLSU
LSU Fan
Baton Rouge
Member since Jan 2004
1826 posts

re: Time to sell your interest in any Bank stock which has less than C- rating


Basel 3 and CFPB changes will certainly impact the markets but the FDIC was put on an unofficial directive to hold off on any takeovers unless the institution was so critically ill that they were forced to pull the plug. C- ratings and lower from Weiss is the only true bellweather that you can rely on.





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Tiger4Ever
UTEP Fan
Member since Aug 2003
35647 posts

re: Time to sell your interest in any Bank stock which has less than C- rating


No doubt, but the comment period for Basel III closed just a week or so ago...it is a long way off an will likely look very different from what is proposed...

I'll stand by my statement that there is nowhere close to "at least two dozen" banks in jeopardy of FDIC takeover in Louisiana. .



This post was edited on 11/7 at 10:28 am


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WaveForLSU
Tulane Fan
Shushybye
Member since Oct 2008
5384 posts

re: Time to sell your interest in any Bank stock which has less than C- rating


can you provide a link for bank ratings in LA please





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foshizzle
LSU Fan
Washington DC metro
Member since Mar 2008
28581 posts

re: Time to sell your interest in any Bank stock which has less than C- rating


quote:

The FDIC was instructed last year to hold off as many bank failures as possible until after the election.


Link?






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RickAstley
LSU Fan
Reno, Nevada
Member since May 2011
1550 posts

re: Time to sell your interest in any Bank stock which has less than C- rating


What is a good site to review bank ratings?





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Tiger4Ever
UTEP Fan
Member since Aug 2003
35647 posts

re: Time to sell your interest in any Bank stock which has less than C- rating


IMO, bankrate may be the best publicly available. The problem with these rating agencies is that they tend to focus on a few key ratios....gives you an idea, but doesn't tell the entire story more times than not.

Check out the Uniform Bank Performance Reports from the FFIECs website...learn it....live it. That will be the bible so to speak if you feel the need to analyze a privately held bank.




This post was edited on 11/7 at 10:44 am


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Meauxjeaux
Memphis Fan
Team Vag
Member since Jun 2005
16203 posts

re: Time to sell your interest in any Bank stock which has less than C- rating


quote:

is going to be


quote:

link


Now THAT would be something of which I would take notice.






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Im4datigers
LSU Fan
Northern Virginia
Member since Oct 2003
3055 posts

re: Time to sell your interest in any Bank stock which has less than C- rating


quote:

Tiger4Ever


....legit info source. I'll echo what he says as well. You will see consolidation no doubt. However, it will be because of the lack of succession planning (mostly old time banks with hard headed grey hairs on mgt and board)and also the interest rate/margin squeeze that's going to only get worse now.






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Nawlens Gator
Florida Fan
louisiana
Member since Sep 2005
2311 posts
 Online 

re: Time to sell your interest in any Bank stock which has less than C- rating



What is the grade for Louisiana FCU? I see it is the second largest CU in the state but can't find the score online without paying a fee.







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Tiger4Ever
UTEP Fan
Member since Aug 2003
35647 posts

re: Time to sell your interest in any Bank stock which has less than C- rating


Can you be more specific? What city? Full name? Don't see a Louisiana FCU





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Tiger4Ever
UTEP Fan
Member since Aug 2003
35647 posts

re: Time to sell your interest in any Bank stock which has less than C- rating


If it is in LaPlace...bankrate gives it a 4/5 stars.







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barry
Cincinnati Fan
Location, Location, Location
Member since Aug 2006
37131 posts

re: Time to sell your interest in any Bank stock which has less than C- rating


quote:

The consolidation of the US banking industry is going to be unlike anything we have seen since the 1980's.


link



LINK






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Nawlens Gator
Florida Fan
louisiana
Member since Sep 2005
2311 posts
 Online 

re: Time to sell your interest in any Bank stock which has less than C- rating



Thanks 4ever. Yes it's headquartered in LaPlace with branches in other cities.







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