This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

JPMorgan, U.S. Bancorp Grow as Banks Fail

Stocks in this article: JPM BBT USB

JPMorgan has been the biggest beneficiary, acquiring Washington Mutual for $1.9 billion in September 2008 after it became the largest U.S. bank failure ever. JPMorgan bought the thrift's deposits, including uninsured balances.

U.S. Bancorp has acquired a dozen failed institutions, including the nine subsidiaries of FBOP of Chicago, which regulators closed on Oct. 30. BB&T has acquired two failed institutions, including Colonial Bank, which had $20 billion in deposits when it shut down on Aug. 14.

Looking for bargains among troubled regional holding companies hasn't been a bad strategy this year. Shares of Fifth Third Bancorp (FITB), which has questionable asset quality and owes $3.4 billion in TARP money, have risen seven-fold since March 6. The stock is trading for more than its tangible book value.

Not all of the acquiring companies are out of the woods. Zions Bancorp (ZION), for example, has bought three banks, including Vineyard National Bank, which closed on July 18. Zions subsidiary California Bank & Trust of San Francisco purchased $1.5 billion in deposits and $1.8 billion in assets from the failed institution, with the FDIC agreeing to share the losses on $1.5 billion of the acquired assets.

Excluding government-guaranteed balances, Zions' nonperforming assets ratio, which includes loans past due 90 days and repossessed real estate, was 4.9% as of September 30. The average ratio for all banks was 2.8% as of June 30, according to the most recent data available. Its annualized ratio of net charge-offs, or actual losses, to average loans was 3.6%, compared with 2.6% for the industry. The company owes the government $1.4 billion in TARP aid.

2 of 3

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 17,778.15 +421.28 2.43%
S&P 500 2,061.23 +48.34 2.40%
NASDAQ 4,748.3960 +104.0840 2.24%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs