Banks have been showing themselves to be in better shape and the news has been generally positive. Uncle Sam is out of Citi (except for a massive warrant position) and another regional is getting out from under the umbrella of the govt.
(Bloomberg) -- Fifth Third Bancorp, Ohio’s largest lender, no longer needs the $3.4 billion it received from the Troubled Asset Relief Program during the financial crisis, Chief Executive Officer Kevin Kabat said.
Fifth Third is ready to discuss repayment of the bailout due to an improved economic environment and the Cincinnati-based bank’s results, Kabat said today in a slide presentation at a Goldman Sachs Group Inc. investor conference in New York and in a regulatory filing.
The retail and commercial lender, which has $112 billion in assets, reported a second straight profit in the third quarter. Fifth Third, which had commercial-mortgage losses in Florida and Michigan, is focusing on credit quality, portfolio management and loss mitigation strategies to drive profits, Kabat, 53, said.
Regional banks are, IMHO, a good place to be as the putback issue is not in the forefront. The problem, however, is the commercial real-estate exposure on their balance sheets (some worse than others, think RF). While they have had a decent run, they may have some rising tide upside left.
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