Waters, CU trades question BB&T, SunTrust merger

Concerns about the merger go beyond just the size of the proposed new bank.

The proposed merger of BB&T and SunTrust may create a megabank that is too large to manage and could pose a risk to the nation’s financial system, House Financial Services Chairwoman Maxine Waters (D-Calif.) warned Wednesday.

“I am concerned that this proposed merger would ultimately not be beneficial for consumers, or the communities that these two banks currently serve,” she said at a hearing on the proposed merger.

The two banks announced their $66 billion merger in February; it would create the sixth-largest bank in the U.S. The banks plan to call the new company Truist.

However, Truliant Federal Credit Union has filed suit to try to stop the banks from using that name, saying it is too similar to its own name. The banks have not responded to that lawsuit.

 

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