About | HeinOnline Law Journal Library | HeinOnline Law Journal Library | HeinOnline
LOG IN
LOG IN

1 1 (July 19, 2019)

handle is hein.crs/govbamv0001 and id is 1 raw text is: Congressional *aResearch Service BB&T and SunTrust: Merger Approval Process and Trends July 19, 2019 BB&T and SunTrust have proposed a merger that could form the eighth-largest bank holding company (BHC) by assets in the United States (see CRS Insight IN 11062, BB&T and SunTrust: The Latest ProposedMerger in a Long-Term Trend ofBanking Industry Consolidation). This has focused congressional attention on bank mergers. This Insight examines the bank merger regulatory approval process. Merger Approval Process BB&T and Suntrust are both BHCs with state-chartered subsidiary banks. The Suntrust bank is not a member of the Federal Reserve System. As such, the merger must be approved by the Federal Reserve (the Fed; primary federal regulator of BHCs and state member banks) under the Bank Holding Company Act and the Federal Deposit Insurance Corporation (FDIC; primary regulator of state nonmember banks) under the Bank Merger Act. Pursuant to these acts, mergers must meet several statutory conditions to be approved. The agencies' mandates are similar in some ways (e.g., both consider financial and managerial resources and anti- money laundering compliance) and differ in others (e.g., the Fed must consider financial stability implications). Particularly pertinent in large bank mergers, both must consider competitive factors (i.e., the potential for monopoly power or anticompetitive effects) and the community's needs and convenience. For example, the merged entity may not initially hold more than 10% of total deposits nationally, 10% of all financial company liabilities nationally, or 30% of deposits in any state (certain states may have additional limits). The Department of Justice reviews mergers for compliance with federal antitrust laws. Furthermore, merging entities must have a good record of consumer protection compliance and Community Reinvestment Act (CRA; 12 U.S.C. § 2901-2908) performance. The process includes opportunities for public input. Applicants generally must publish notice of their merger proposals, typically in newspapers, informing the public of the opportunity to submit written comments. In addition, the agencies may hold hearings on proposals, allowing interested parties to testify. Congressional Research Service https://crsreports.congress.gov IN11146 CRS INSIGHT Prepared for Members and Committees of Congress

What Is HeinOnline?

HeinOnline is a subscription-based resource containing thousands of academic and legal journals from inception; complete coverage of government documents such as U.S. Statutes at Large, U.S. Code, Federal Register, Code of Federal Regulations, U.S. Reports, and much more. Documents are image-based, fully searchable PDFs with the authority of print combined with the accessibility of a user-friendly and powerful database. For more information, request a quote or trial for your organization below.



Short-term subscription options include 24 hours, 48 hours, or 1 week to HeinOnline.

Purchase Access

Already a HeinOnline Subscriber?

Log In

profiles profiles most