Warren, Brown raise alarms about biggest bank merger since crisis
By Victoria Guida
The biggest proposed bank merger since the 2008 financial crisis is drawing flak from Sen. Elizabeth Warren and other key Democrats, who warn that it could create another institution so large that its failure would threaten the economy. The potential deal between BB&T and SunTrust, which would create the nation’s sixth-largest retail bank, has also sparked fears about branch closings and whether the marriage will reduce consumers’ access to credit, concerns that were voiced on Thursday at a public hearing in Charlotte. …But Karen Petrou, managing partner at Federal Financial Analytics, said the notion that the merged bank would be considered by regulators as too big to fail is a “big stretch.” “It would be a big drain on the FDIC, but manageable because the bank, while big, is relatively simple and traditional,” she said.