Regulation

Hearings Scheduled For BB&T, SunTrust Merger

The House Financial Services Committee has scheduled hearings about the proposed merger between BB&T and SunTrust Banks, as well as the Facebook-planned cryptocurrency Libra.

According to American Banker, the committee will meet July 17 to examine Facebook’s proposed cryptocurrency and its impact on consumers, investors, and the U.S. financial system. The Senate Banking Committee will hold its own hearing on the social media giant’s digital currency, called Libra, the day before.

Committee Chairwoman Maxine Waters, D-Calif., has already called for a moratorium on the crypto.

“With the announcement that it plans to create a cryptocurrency, Facebook is continuing its unchecked expansion and extending its reach into the lives of its users,” Waters said earlier this month. “The cryptocurrency market currently lacks a clear regulatory framework to provide strong protections for investors, consumers, and the economy. Regulators should see this as a wake-up call to get serious about the privacy and national security concerns, cybersecurity risks, and trading risks that are posed by cryptocurrencies. Given the company’s troubled past, I am requesting that Facebook agree to a moratorium on any movement forward on developing a cryptocurrency until Congress and regulators have the opportunity to examine these issues and take action. Facebook executives should also come before the Committee to provide testimony on these issues.”

And on July 24, the House banking panel will meet for a separate hearing called “The Next Megabank?” to examine the impact of the proposed merger between BB&T and SunTrust banks to form Truist Financial.

“With the merger of equals, our goal is to create a bold, transformative organization that delivers a smarter and easier client experience through technology and human connection,” said BB&T chairman and CEO King, who will serve as the chairman and CEO of the combined company. “True to the heritage of both companies, Truist will reflect what we stand for — a shared belief in building a better future for our clients and communities.”

Truist will be the sixth-largest U.S. bank holding company, serving more than 10 million households in the U.S. The merger is expected to close in the third or fourth quarter of 2019, bu Waters has asked regulators to delay approval of the deal until it is examined by Congress.

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