M&T Bank’s Profit Falls 75% in Q2

July 20, 2009 by · Leave a Comment
Filed under: Industry News 

Here they come, this is what I will call the “Reality Check”.  Sure the investment banks found really cool accounting methods to pull surprise profits but the regional and local banks are going to bare the truth that the economy is far from being out the woods.  Its quote obvious when you quit drinking the “kool-aid” and take off your “rose-tinted” glasses and look at the horrible unemployment numbers.   Sorry to break it to you but capital does reallocate itself that fast.  Its pretty clear its going to be another crazy September and October investing environments.  Stay tuned, more to come.

News (Wall St. Journal):

M&T Bank Corp.’s second-quarter profit plunged 75%, reflecting charges from its acquisition of Provident Bankshares and special payment toward the Federal Deposit Insurance Corp.’s deposit-insurance fund.

But Chief Financial Officer Rene F. Jones noted that core deposits continued to grow — rising 12% overall — and credit costs remained in line with the bank’s expectations and “continue to remain favorable” compared with the industry. M&T’s conservative underwriting standards historically insulated them from credit-market woes.

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