SunTrust Bank Considered Weak By Some
It appears SunTrust Bank has a (D-) rating reflecting significant weakness. September 2009 will be the next update for SunTrust Bank but a significant weakness can impact depositors and creditors in a negative manner.
Consider about 15 banks are failing each month and although SunTrust did participate in the bank bailouts, taxpayers have been subsidizing SunTrust Bank through the bank bailouts. Just ask yourself, when is the last time any bank did you a favor.
Weak banks are impacted from difficult economic times through magnifying their financial distresses. Most credible experts agree, commercial real estate is the next to tank, just look at vacant stores, malls and strip shops in your neighborhood.
Regarding real estate, as of June 30, 2009 SunTrust Bank shows about $125 million in total loans. A little over $53 million in 1-4 family homes, almost $25 million in “other” real estate, nearly $ 31 million in commercial real estate. If commercial real estate continues to fail, SunTrust Bank could find their rating downgraded again.
Then consider, SunTrust Bank has “standby letters of credit issued by Federal Home Loan Bank” on SunTrust’s behalf in the amount of almost $5.3 million.
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