Friday, March 15, 2013

Why Did the Fed Deny BB&T?

Results from the annual CCAR round of banking stress tests were released last night, which are the results upon which the Fed makes decisions about whether or not to allow banks to initiate new capital allocation programs, such as dividend increases or share repurchases.

In this video, Motley Fool financials analysts Matt Koppenheffer and David Hanson discuss one bank whose request for more capital allocation came back painfully denied:�BB&T (NYSE: BBT  ) . David tells investors why this rejection happened despite a strong performance in last week's Dodd-Frank round of stress tests, why it isn't necessarily related to the amount of capital the company has on hand at the moment, and why increased dividends and share buybacks may still be on the way for BB&T investors after all.�

With big finance firms still trading at deep discounts to their historic norms, investors everywhere are wondering if this is the new normal, or whether finance stocks are a screaming buy today. The answer depends on the company, so to help you figure out whether BB&T should be on you radar, I invite you to read our premium research report on the company today. We'll fill you in on both reasons to buy and reasons to sell BB&T, and what areas BB&T investors need to watch going forward.�Click here now for instant access!

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