Bill and BOD sold insurance off so they can begin the stock buybacks to increase share price. Board voted to spend 5 bil on share buybacks. Some of you think Bill is gonna get the boot, LMFAO!
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I thought they’d close it after the American Banker article last year that was so critical. I think it’s risk exposure that we don’t need too. Even just reputational risk, I doubt the benefits from it offset the potential downsides
On that topic, does anybody have a rough idea of the costs of the Leadership Institute? I have heard it is a money pit, but I have never seen anything concrete. Was keeping it up and running a merger promise?
@3dhi+1tfSp0bA - re: the leadership institute - I have a friend in public education who went. Said it was the biggest waste of time and money he had ever seen.
It is really simple folks. Bill controls the BOD, end of story.
A stock buyback in the face of the serious operational struggles is as transparent, short-term and self-serving a move as you will see in finance. Executive management is pulling the easy levers and winding it down.
By the way, if you were serious about capital allocation and looking for unproductive capital to apply to a stock buyback, what about the Leadership Institute? Talk about a wasteful boondoggle in the face of selling actual ongoing productive assets (insurance, employees, etc.).
@3oot+1tfSp0bA, you are 100% correct! Stock buybacks are a onetime event that will only temporarily increase the stock. Anyone applauding the insurance sale doesn’t understand diversification of an income stream. Selling that off was short sighted, foolish, and it barely moved the stock price. Everything that is being done is for short term benefit and does nothing to fix the crumbling foundation. It sure feels like the bank is positioning for a sale. But I can’t imagine there would be any takers.
A cynical view is to question why the Board is allowing the executive team (who is so clearly struggling to run the bank) the freedom to use corporate cash to buy back stock. Truist’s operating issues aren’t a secret, why not invest in fixing them first?
Isn’t this executive team paid handsomely with stock awards? In effect, is this not simply increasing their compensation as it allows them to diversify their holdings at an artificially inflated short-term price?
Cutting 20% of your ongoing revenues to do a one time stock buyback. Brilliant.
Everything that id--t does is shortsighted at best. More likely a pump a dump tactic so him and his cronies can cash out.
Sounds like you are on the kool aid. Buy backs and exchanges are effectively one time activities. Insurance Revenue was an ongoing hedge for traditional banking revenue volatility. At the end of the day, revenue and expense synergies were not realized and this team has shown they won’t be.
How you can close 30% of branches and not show any expense savings is mind blowing
Not sure I’m a believer in this:
They also replaced TIH revenue, plus some, with the bond exchange and had some left over for buybacks. Im not on the koolaid, but calling a spade a spade, it wasnt a bad financial move. Also this is a business in business to make money.
Truist’s reputation across their footprint is very poor. At some point a bank has to bring in and retain clients, and Truist is struggling with both. Decreasing the stock float with buybacks doesn’t change that reality.
Like the insurance sale, my opinion is this is yet another example of a buying time strategy. Keep accumulating those big executive salaries until (not if) the music finally stops. Otherwise, I thought the guiding purpose of the entire merger was to create a world-class technology bank, why aren’t they investing in that?
Aye just give up and give your capital back to the market lol.
The message here is: There’s nowhere in Truist worth investing any more cash. Might as well give it back to your stupid investors so they can put it in some real companies.
They also replaced TIH revenue, plus some, with the bond exchange and had some left over for buybacks. Im not on the koolaid, but calling a spade a spade, it wasnt a bad financial move. Also this is a business in business to make money.
I’m glad they eliminated my job last year so they can spend that money buying back stock. It’s a very smart business move to eliminate productive roles and offshore to people that are low skill and low pay and boosts your financial ratios. Stretch that dime Bill. I remember National City bank failing in 2008 and being acquired for Pennies by pnc and wishing they hadn’t spent years and billions trading cash for a suddenly worthless and useless asset. Great business move. Cash equals king.