Alert student Adam Dupnik made this post over the weekend. I have moved it front and center as a good example of what is going on.
As I write at 6:22 AM there is an interesting discussion on CNBC.
Most Community Banks are in good shape as they know their customers.
The interviewer asked, so why aren't they loaning more money?
Answer, one, few are asking for loans to make an investment in this environment, Two, the regulators are very harsh at this time, well guess what, why take a risk and get written up by a regulator? so there you have it, lax regulation led to risky loans, harsh regulation leads to very few loans and fewer borrowers, hello recession.
Adam's comment follows.
I did not know where to post this information but BBVA Compass bought out Guaranty Bank making it the first time a foriegn bank as bought out a struggling U.S. Bank. Guaranty Bank has 162 branches across Texas and California.
Interesting stuff here, BBVA is the 13th strongest bank worldwide and has been looking at making an imprint here in the U.S. as of Novemeber they completed the U.S. merger of Compass Bank, Laredo National Bank, Texas State Bank, and State National Bank. It will be interesting to see what they do from here.
Professor Elam 
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