The Federal Reserve Board ("FRB") and the FDIC (collectively, the "agencies") approved, in separate orders (see here and here), the merger of BB&T Corporation and SunTrust Banks, Inc. and their subsidiary depository institutions. The merger, which is the largest bank merger since 2008, is expected to close in December.
According to the agencies, the resulting bank, which will be named Truist Bank, will:
be the eighth largest insured depository organization in the United States;
have consolidated assets of approximately $453.4 billion, compromising two percent of assets of U.S. insured depository institutions; and
control consolidated deposits of approximately $330.9 billion, compromising 2.6 percent of the total deposits of U.S. insured depository institutions.
The approvals are conditioned on, among other things, BB&T divesting 30 branches and approximately $2.4 billion in deposits.
On the same day that the approvals were issued, the FRB entered into a consent order with SunTrust Banks, Inc. ("SunTrust") relating to misleading or inaccurate statements made by SunTrust between 2013 and 2017 to certain business customers about the operation of, and billing for, add-on products.
House Financial Services Committee Chair Maxine Waters (D-CA) asked the Federal Reserve Board and FDIC for more time to review the proposed merger of BB&T Corporation with SunTrust Banks, Inc.
House Financial Services Committee Chair Maxine Waters asked the Federal Reserve Board and the FDIC to delay final decisions on the proposed merger of SunTrust Banks, Inc. and BB&T Corporation.
The Federal Reserve Board and FDIC will meet to discuss the proposed merger of BB&T Corporation with SunTrust Banks, Inc.
In a letter to Federal Reserve Board Chair Jerome Powell, Senator Elizabeth Warren raised questions about the Board's approval process for bank mergers and acquisitions.
Senator Elizabeth Warren criticized the Federal Reserve Board's approval process for bank mergers and acquisitions, claiming that 100 percent of the merger applications received are approved.