WASHINGTON, D.C. — U.S. Sen. Sherrod Brown (D-OH) – ranking member of the U.S. Senate Committee on Banking, Housing, and Urban Affairs – is calling on BB&T Corporation and Suntrust Banks, Inc. to provide information on the impact the banks’ proposed merger will have on the employees, customers and communities the banks serve. BB&T Corporation and SunTrust Banks, Inc. filed a merger application with the Federal Reserve Board and the Federal Deposit Insurance Corporation (FDIC).
“This announcement is concerning because it comes shortly after Congress provided significant giveaways to institutions with under $250 billion in assets. The merger also deserves scrutiny because it would be of a magnitude that we have not seen since the financial crisis, creating the sixth largest bank in the country,” Brown wrote.
Sen. Brown also tells the banks’ CEOs, “You did not provide information on how the proposed merger would affect employees, bank branches, or the communities your banks serve. Specifically, you did not describe how innovation, automation, overlapping footprints, and operational efficiency would impact the banks’ workforce. Nor did you describe how an increased focus on technology would influence brick and mortar branches. You did not mention the consequences to consumers and small businesses of reduced competition in shared markets. You also failed to make clear the anticipated effects of the merger on the people who rely on your banks in their daily lives.”
Read the full letter below.
March 28, 2019
Kelly S. King William H. Rogers Jr.
Chair and CEO Chair and CEO
BB&T Corporation SunTrust Banks, Inc.
200 West Second Street SunTrust Plaza
P.O. Box 1250 303 Peachtreet Street Northeast
Winston-Salem, NC 27102-1250 Atlanta, GA 30308-3201
Dear Messrs. King and Rogers:
BB&T Corporation and SunTrust Banks, Inc. recently announced their intention to merge, and the merger application has now been filed with the Federal Reserve Board and the Federal Deposit Insurance Corporation. This announcement is concerning because it comes shortly after Congress provided significant giveaways to institutions with under $250 billion in assets. The merger also deserves scrutiny because it would be of a magnitude that we have not seen since the financial crisis, creating the sixth largest bank in the country.
It is critical that we understand this merger’s impact on employees, consumers and the communities you serve. When announcing the proposed merger, your banks touted the combined entity’s large size, the location and core functions of a new headquarters and current home markets, the expected dividends and other returns to shareholders, and the potential for increased technological innovation. The banks also noted that they expected the proposed merger to deliver approximately $1.6 billion in annual net pre-tax cost savings, primarily from facilities, information technology, shared services, retail banking, and third-party vendors.
You did not provide information on how the proposed merger would affect employees, bank branches, or the communities your banks serve. Specifically, you did not describe how innovation, automation, overlapping footprints, and operational efficiency would impact the banks’ workforce. Nor did you describe how an increased focus on technology would influence brick and mortar branches. You did not mention the consequences to consumers and small businesses of reduced competition in shared markets. You also failed to make clear the anticipated effects of the merger on the people who rely on your banks in their daily lives.
Accordingly, I request more information to understand the proposed merger’s impact on your employees, customers, and communities you serve. Please answer the following questions by April 15, 2019.
In your announcement, you highlighted enormous benefits to your shareholders. The benefits of the merger to employees, and working families and their communities, are less clear. Your responses to this letter will be helpful in evaluating the full effect of this proposed merger.
Sincerely,
Sherrod Brown
Ranking Member
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