"This will be a meaningful measure of regulatory comfort with bank mergers," said Isaac Boltansky, political research director for Compass Point, an investment bank. For the largest banks, Mr. Boltansky said, "My understanding is that there is still a regular hesitation."
The deal would bring the overall bank's assets to well over $ 250 billion as under the Dodd-Frank Act 2010, mandates lenders comply with stricter capital requirements and closer regulatory scrutiny.
According to the proposed transaction, BB & T would pay 1,295 of its shares, which was worth around $ 62.85 each at the end of the Wednesday trading, for each SunTrust share ̵
BB & T will own 57 percent of the total unit. While headquartered in Charlotte, the new bank would maintain operations in Winston-Salem and Atlanta.
Kelly King, BB & T's Chairman and CEO, becomes Executive Vice President of the merged bank, while William Rogers, his SunTrust counterpart, will be CEO.
"It is an extraordinarily attractive financial proposal that provides the scale needed to compete and win in the rapidly evolving world of financial services, Mr. King said in a statement. The deal is expected to be at the end of the year, pending regulation and shareholder approval
The two banks said they expected to cut $ 1.6 billion in costs by eliminating jobs in bank branches and in so-called back office positions, such as in accounting and legal departments. will help fund a technology center in Charlotte, which focuses on building digital banking systems, which in theory will help the new bank compete with the national giants.
"The Innovation Center is not just a delivery service," said Andrew Atherton. technology director investment bank Union Square Advisors. "When you have more dollars to distribute to technology as a larger device, you can start competing e more directly with JPMorgans, US banks, the technology leader Wells Fargos. "