Fed
approves BB&T “merger of equals” with SunTrust Banks, Inc. of Atlanta,
Georgia.
By Stephanie
A. Stradford and Eric Stradford, U.S. Marine Corps, Retired
AMWS,
November 20, 2019, Atlanta – As many Americans are consumed by politics of
division, a faithful few have pressed toward the prize of community over chaos. To be or not to be “one nation under God,” is
the question.
“Fruit
of the poisonous tree” is just one biblically rooted legal metaphor that
might apply to a
century of bank mergers in the United States. Recognizing that generations of underserved
Americans can realize economic inclusion, some Money Smart Alliance members are
promoting efforts to bring underserved consumers into the financial mainstream.
Youth Achievers USA Institute is a
501c3 public charity committed to helping children in low income American
families grow up less poor. YouthUSA has
learned that finding the right bank partner is an essential step in
transforming historical disadvantages into economically sustainable community
enterprises. But what happens when a bank is too loose with the truth about treasury
allocations?
The Federal
Reserve Board has issued a consent order against SunTrust Banks, Inc. of
Atlanta, Georgia for unfair and deceptive practices. According to the Fed, “SunTrust made
misleading or inaccurate statements between 2013 and 2017 to certain business
customers about the operation and billing for certain add-on products.” The Fed reported that SunTrust repaid
approximately $8.8 million in fees to customers and promised millions more in
community reinvestment.
As the
SunTrust footprint diminishes, an historically
rotten reality must somehow bear good fruit. A new brand promises to restore community
trust in banking. The Federal Reserve
Board met yesterday (Nov 19, 2019) and approved
an application by BB&T Corporation of Winston-Salem, North Carolina, to
merge with SunTrust Banks, Inc. of Atlanta, Georgia.
As a
condition of the merger, BB&T has committed that the resulting bank will comply with the enforcement action, including
implementing procedures to verify the refunds and providing additional refunds,
if required.
Already
efforts are underway to determine who is included and who will be excluded from
a $60 billion Community Benefits Plan. "The
Community Benefits Plan exemplifies what Truist will stand for and how it will
support local communities in the years to come," said BB&T Chairman
and Chief Executive Officer Kelly S. King.
Truist committed
to work with a Community Advisory Board composed of representatives of
nonprofit organizations serving low-and moderate-income communities, with the
goal of “providing information and updates on the progress of the plan,
obtaining input and feedback on emerging issues,” and perhaps addressing challenges
facing LMI families and communities.”
Armed Forces
veterans and historically disadvantaged community entrepreneurs joined YouthUSA
to engage low to moderate income Americans as economic beneficiaries in a $100-million Vibranium Trust . TheEnterpriZe, LLC,
a veteran-owned small business representing the YouthUSA Corporate Village has
been tracking trust, or the lack thereof, following a
100-year history of bank mergers in the United States.
According to sources, the $60 billion
Truist Community Benefits Plan is a three-year commitment. It includes:
-$31 billion for home purchase
mortgage loans to LMI borrowers, LMI geographies, minority borrowers and/or
majority-minority geographies.
-$7.8 billion for lending to small
businesses and to support the growth of businesses with revenues less than $1
million.
-$17.2 billion in Community
Development Lending (CDL)to support affordable housing development, small
business growth lending to nonprofits that support the LMI community.
-$3.6 billion in Community
Reinvestment Act (CRA) Qualified Investments and Philanthropy, of which $120
million will be designated for CRA-qualified philanthropic giving.
The branding
of Truist Financial Institution comes at a time when America must awaken from a
nightmare to become “one nation under God.” In an economically inclusive vision of the
future, “The poor can stop being poor if the rich are willing to become even
richer at a slower rate.” Economic advisor Hyman Bookbinder pointed to this
path way back during the Lyndon Johnson administration. He added, “…unless a substantial sacrifice is
made by the American people, the nation can expect further deterioration of the
cities, increased antagonisms between the races, and continued disorders in the
streets.”