Donate search
close

Share

  • Facebook
  • Twitter
  • send Email
  • print Print

BB&T’s Acquisition of SunTrust Creates The Biggest New Bank in a Decade

One of the big pieces of financial news this week came when BB&T announced that it would acquire SunTrust in an all-stock deal. The merger would create a completely new bank based in Charlotte.

The move is the biggest bank merger in a decade, and it allows both entities to shed about 10 percent of costs while creating the sixth-largest bank in the country, a financial institution that plans to take advantage of technology to better serve customers.

Both banks have ensured customers that they don’t have anything to worry about.

The combination “provides the scale needed to compete and win in the rapidly evolving world of financial services,” BB&T CEO Kelly King, who will keep that title at the new company, said in the banks’ joint statement Thursday.

In the few hours since the deal was announced, both banks have been calling their biggest clients and shareholders to make sure they understand that the deal is “positive for everybody,” King said on a conference call with analysts Thursday morning. The banks aren’t expecting attrition as they merge, but rather growth, King said.

The deal is the first large deal since financial insiders began predicting that we would see large-scale mergers in the wake of relaxed banking regulations and the recent changes to the U.S. tax codes.

The news brought BB&T’s stock price up by almost 3 percent, while SunTrust’s price rose by 8.7 percent, a sign that the news was welcome to investors.

The move appears to take SunTrust’s Atlanta headquarters away as the new company’s operations to North Carolina. It remains to be seen what the new name will be, but the question that looms on the minds of Braves fans everywhere is: what will happen to the naming rights for SunTrust Park?

Share

  • Facebook
  • Twitter
  • send Email
  • print Print

Advertisement

More Top Stories

You Can’t Love Jesus and the Klan

More and more people are calling for a resurgence of the Ku Klux Klan. The Klan started out as a really bad practical joke among former Confederate soldiers. Over time, it grew into a legitimate terro …

Source: iStockPhoto.com

The New York Times Got This Right

When done properly and not gilded with political venom, news can actually be informative. The New York Times had the proper stories in the proper order Wednesday night on its home page. You had to scr …

Folsom Lake College Blues: Campus On Alert Because Of A Frog Cartoon

A California college campus is on high alert after someone put a picture of a frog on a professor’s door. Now there’s a sentence your grandparents never would have dreamed of reading. Sadl …