What troubles Bove is SunTrust's loan portfolio that contains Alt-A mortgages and loans of all types in Florida, a state that has been a hotbed for mortgage foreclosures. Overall, the Atlanta-based bank has
$48.2 billion in residential real estate and home equity loans, which represent
a hefty 39% of its loan portfolio. In addition, the bank, which raised its dividend 5% to 77 cents per share in February, refuses to cut its payment to conserve cash.
Bove speculates -- as well as many others -- that J.P. Morgan Chase & Co., which is reportedly hunting for a bank in the South, is a leading contender. He also identifies Wells Fargo & Co., which also has emerged relatively unscathed by the subprime crisis, as another potential suitor. - Gerald Magpily
See Reuters article
See Dealscape: J.P. Morgan's Dimon looking for deals in the South?
SunTrust Banks Inc. has a cloudy future with its finances in a mess and its survival possibly depending on who acquires the troubled bank. 
