Oil Spill's Next 'Collateral Damage': Regional Banks
By: The massive oil spill in the Gulf of Mexico has damaged shorelines, destroyed wildlife, and spurred unemployment and now its contagion is reaching regional banks in the gulf, Kevin O'Brien, chief executive of Revere Data, told CNBC Tuesday.
"I think what you are beginning to see is the collateral damage effect that goes beyond just the oil sector. We think that all sectors are interconncected in one way or the other," said O'Brien.
"So, as this disaster has been increasing in duration and in size, you are seeing an impact now into Mississipi banks, Florida banks, folks that are dependent on revenue out of that particular region."
Florida regional banks have been down about 10.9 percent since the oil spill, according to Revere Data.
There are about ten banks in the Florida region that are significantly down against their broader peer group, said O'Brien.
Ripples...Up
In the energy sector, companies that drill for oil in the Middle East and on the Permian Basin, which is located in Northwest Texas and in New Mexico, have been up since the gulf oil spill.
Companies drilling in the Permian Basin have been up 7.7 percent and companies performing oil exploration in the Middle East have increased 5.6 percent.
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Disclosures:
Disclosure information was not available for Kevin O'brien or his company.
