In this report, we assess today’s HFSC hearing on the BB&T/SunTrust merger, a large transaction that is subject to political risk with implications for any other banking transaction of size or scope and broader action on pending “megabank” legislation.  Chairwoman Waters (D-CA) reiterated serious concerns and made clear that the committee will continue to investigate them with an eye to revising or preventing the merger.  Arguing that the FRB and FDIC typically “rubber stamp” merger applications, she reiterated her call for the agencies to defer a final merger decision until HFSC’s investigation is complete. 

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