On Monday's MarketFoolery, host Chris Hill and Motley Fool Germany analyst Matt Koppenheffer discuss banking giant BB&T (NYSE:BBT).

With BB&T's second-quarter earnings down from a year ago, Chris asks Matt what's happening with the company. Matt says that banks fall into two categories: those whose mediocre results are viewed favorably because analysts don't expect much from them, and those that disappoint when they fail to meet expectations because analysts expect more. BB&T falls in the latter category, Matt says, even though the stock is still trading at two times tangible book value. He says BB&T's practices are better than those of other banks and moves the company further from the likelihood of bankruptcy.

However, Matt also warns that the Department of Housing and Urban Development is starting to investigate the next tier of banks, including BB&T, so investors who thought they were going to dodge federal scrutiny by putting their money on smaller banks may be in for a rude awakening.