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S and T Bank May Be In Trouble

Detective Krum

Detective Krum

S & T Bank, based in Indiana, Pennsylvania has been downgraded by analysts and recommended a sell according to Bloomberg. S & T Bank rating is a ( D+ ) but it appears analysts see the need to sell and watch this blog to see if the bank indeed, fails.  Consider SunTrust Bank, their rating is a ( D- ) considering SunTrust Bank received about $2.2 billion.Ten major bank holding companies received bank bailouts

Among the 10 bank holding companies, Bank of America Corp. was judged in May to need $33.9 billion in additional capital under regulators’ criteria, the largest gap. Wells Fargo & Co.’s shortfall was $13.7 billion, while Citigroup Inc.’s was $5.5 billion. The Fed told banks in May to shore up reserve capital by early this month. The Federal Reserve Bank index is here.

Fifth Third Bancorp’s capital need was $1.1 billion, KeyCorp’s was $1.8 billion, PNC Financial Services Group Inc.’s was $600 million, Regions Financial Corp.’s was $2.5 billion and SunTrust Banks Inc.’s was $2.2 billion. GMAC LLC needed $11.5 billion, while Morgan Stanley’s assessment was $1.8 billion.

The bank holding companies appeared to tighten lending policies instead of lending more to help stop foreclosures. In addition, bank holding companies upped interest rates to consumers while the bank was getting the money near zero percent interest from the fed and the banks cut credit limits.  The banks claim they have paid back the bailout money. How have banks paid back taxpayers? Banks claim they have dropped their interest rates and loosened credit. Have you looked at your credit card changes? Higher interest rates and cut limits don’t show the banks claims.

What can you do to voice your displeasure with bank mismanagement? Let’s learn from the auto bailout. Customers stopped buying GM and Chrysler and Ford was rewarded for not taking bailout money with increased sales.  Looking for a bank that did not participate in the bank bailouts is an avenue many are taking.

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November 11, 2009 - Posted by | 1 | , , , ,

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