In a move the press is calling a consequence of the Trump Administration’s long string of deregulation, BB&T is buying banking rival SunTrust.
The merger will position BB&T as the sixth-largest bank in the country. The banking chain is set to control large swaths of the east coast of the United States, and will be headquartered in Charlotte, North Carolina. The deal is expected to be concluded by the fourth quarter of 2019, with the new banking entity set to be valued at roughly $66 billion. Once complete, the new company will operate under a new name.
“This is a true merger of equals, combining the best of both companies to create the premier financial institution of the future,” BB&T Chairman and CEO Kelly S. King said in a press release. “It’s an extraordinarily attractive financial proposition that provides the scale needed to compete and win in the rapidly evolving world of financial services. Together with Bill’s leadership and our new SunTrust teammates, we’re going to bring the best of both companies forward to serve our clients and communities.”
Lawmakers in Washington are far less enthusiastic. Democratic politicians critical of the Trump Administration’s slashing of financial regulations have suggested that such a merger paves the way for a repeat of the banking crisis of 2008.
“This proposed merger between SunTrust and BB&T is a direct consequence of the deregulatory agenda that Trump and Congressional Republicans have advanced,” California Rep. Maxine Waters, who heads the U.S. House Financial Services Committee, said earlier in February.
“The proposed merger raises many questions and deserves serious scrutiny from banking regulators, Congress and the public to determine its impact and whether it would create a public benefit for consumers,” she added.
Despite criticism from Congress, corporate leaders maintain the merger will make the new entity more efficient at producing new technologies its customers demand, and will help cut costs in the long term.
See what financial experts are saying about the merger in the video below:
BB&T and SunTrust announced a $66B merger — Here’s what three experts say that means for the financial sector from CNBC.
Regards,
Ethan Warrick
Editor
Wealth Authority