Mr. Siegenthaler: Yes, I focus mostly on the Southeast, Midwest and Mid-Atlantic. In the Mid-Atlantic specifically, I cover M&T Bank, which is a New York bank with some exposure in New York City. They've also made some acquisitions in Maryland. I also cover Valley, which is mostly a New Jersey bank with some New York City exposure. I also cover Fulton , which is mainly in the backwoods of Pennsylvania with branches in Lancaster and Harrisburg, and stretches down into Maryland. Most of the Mid-Atlantic geography is covered through the mega banks like Citibank. Bank of America is big in the region and so is PNC . It's different in the Southeast region, it is much more of a regional area. The regional banks, they are kind of your biggest three - they are the ones that I just mentioned, M&T, Valley and Fulton.
TWST: How are these banks faring in relation to the headlines and to banks in other parts of the country?
Mr. Siegenthaler: Credit-wise, they're much healthier. I mean, a lot of investors are worried about New York City deteriorating, but we haven't really seen too much yet on the credit side. It's still likely to come. I think the likely scenario is that credit problems for the Mid-Atlantic peak a year or two after the Southeast, but the severity will be much, much lighter. In the Southeast, real estate appreciation was very strong, and then you had a much sharper correction in the Southeast - that's why you've already seen a lot of losses there. The banks down there have suffered a lot.
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