Finance 202: The biggest bank merger from financial crisis is on board today in Congress

432

TICKET

SunTrust's 66 and $ 66 billion Sun merger, which would create the largest country bank in the country, will face its biggest test yet on Wednesday when the Bank's Chief Executive Officers are opposed to suspicions in the House.

During a hearing before the House Financial Services Committee – “The Next Megabank? Examine SunTrust and BB&T Proposed Modes ”- banks are preparing to protect their merger plans as an opportunity to increase their investment in local communities. This is the largest proposed bank merger from the 2008-2009 financial crisis and comes as the Trump administration has put in place a number of key rules that have since been implemented to prevent further economic mess.

“In order to best serve our clients, we need to invest in the future – and this is one of the key drivers of this merger,” said Kelly S. King, chairman and chief executive of North Carolina-based BB&I. committee, according to its prepared evidence.

A few weeks before the hearing, SunTrust also announced that it would reduce business links with private prison companies and a detention center, and that it would put tough questions from progressive manufacturers, particularly committee members, Alexandria Ocasio-Cortez (DN.Y. .). The bank has already spent over $ 1.05 million lobbying during the first half of this year, according to data from Open Secrets. BB & T expenditure on lobbying has increased by 8 per cent to over $ 534,000 so far this year, according to Open Secrets.

Last week, banks said they had dealt with community groups to increase their lending and investment in low-income and moderate customers to $ 60 billion over the next three years, facing on. other Democratic concerns.

“The banks didn't do everything we wanted,” said Jesse Van Tol, chief executive of the NCRC, a research and advocacy coalition of 600 community organizations that promote economic and racial justice, but “wouldn't agree with it, if not I am a good plan. ”

But SunTrust and BB & T will not have an easy job selling the Democrats and they said that a decade ago the global financial crisis would create a bank too big. Democratic 2020 candidates like Sen. Elizabeth Warren have warned of the potential dangers to the economy.

Representative of Maxine Waters (D-Calif.), Chairman of the Financial Services Committee, asked regulators to postpone a decision until legalists have followed.

“The proposed merger raises many issues and is a significant examination by banking regulators, Congress and the public to determine its impact and whether it would create a public benefit for consumers,” Waters said in a recent letter to the Reserve. Federal and Federal Deposit Insurance Fund.

If approved, the combined bank, known as Truist, would have approximately $ 442 billion of assets with more than 50,000 employees, making it the largest bank merger from the crisis.

“One of the most significant lessons since 2008 is that banks can threaten middle Americans, their livelihoods,” said Jeremy C. Kress, assistant professor at the University of Michigan Ross Business School. “This financial union is creating another major financial institution, and I think there is some concern.” T

The discussion has already received approval from a principal state regulator, and in the light of preparation, the banks' CEO says that it will not create new risks for the financial system.

“Some suggested that this transaction will create an institution that is too large. However, in the case of this merger, it does not mean that it is more dangerous, ”says William H. Rogers Jr, chairman and chief executive of SunTrust Banks Inc., to the committee, according to prepared evidence. “Every company now has a conservative risk profile and we will maintain it as a combined entity. We are also scale rather than complex. ”

This happens when the banking industry is entering a so-called "golden age" on Jamie Dimon, chief executive of JPMorgan Chase, the country's largest bank. "The industry is reporting record profits, and many of the regulations are more acute after the crisis. If the merger is allowed, it could open the way for other mergers, industry analysts said. T

And King, the chief executive of BB & T, doesn't seem to worry about the threat posed by the law. Kelly asked for the hearing during a conference call with analysts last week, “We will be able to satisfy them that there is nothing negative about this. … I'm looking at it as four or five hours of free advertising. ”

TRUMP TRADE

TRADE SYSTEM:

US negotiators on China to make talks: “American trade negotiators will shortly come to China for face-to-face talks as the two largest economies in the world try to deal, sources told CNBC,” report Kayla Tausche and Jacob Pramuk the network.

“US officials will come to China to discuss between Friday – the start of a six-week conference break in Washington – and Thursday, 1 August. While the talks show the next critical step after the leaders of the countries have reached a break in June, dealing is not so close. ”

JPMorgan says that trade threats constitute trading threats: t “Trade uncertainty will be“ an exciting cloud ”over dangerous assets for at least 18 months, according to Asset Management JPMorgan,” says Bloom Bartteintein Bloomberg.

“Gabriela Santos, the New York-based global market strategies, said she was becoming increasingly concerned about the developing assets of the nation as the tensions between the world's largest economies are unlikely to deteriorate soon. . It is important to add more value stocks to portfolios to balance growth stocks, she said.

Apple requires an exemption from a tariff: “Apple asked. the administration of Trump components that make up the upcoming Mac Pro high-desktop desktop to be excluded from import tariffs, weeks after planning to make the production of the line relocate to China from Texas, ”Mark Gurman and Mark Bloomberg Niquette Report.

“Cupertino, California-based technology giant is looking for relief from 25% duties on associated Mac Pro accessories and accessories, ranging from stainless steel frame to aluminum, power supplies, internal cables and circuit boards, and optional wheels, according to filings presented by the Office of the US Trade Representative. The documents do not specifically mention the Mac Pro, but the features and dimensions listed by Apple in the filing are similar to the planned computer. ”

Meanwhile, Hasbro, the excavated giant, is accelerating plans to move production out of China for new plants in Vietnman and India, t Jeff Sullivan reports from Bloomberg.

Trump is sitting to protect his state tax returns: “President Trump asked Chairman Ways Ways and the Committee Representative Richard Richard Neal (D-Mass.) And New York state officials on Tuesday to release any state tax returns to the House under the law of state passed this month to prevent, ”Spencer colleague S. Hsu reports.

“In a 25-page exercise filed as a private citizen in a federal court in Washington, Trump called for the new unconstitutional law and claims that he is part of a campaign to disclose his private information as a gain. political. ”

Jeff Epstein's problem is at Deutsche Bank: “As Deutsche Bank's officials this year were trying to expel themselves from a year-old relationship with Jeffrey Epstein, the wealthy cashier who was charged this month with sexual trafficking, they revealed suspicious transactions in which Mr Epstein had made money. shifting from the US, ”New Report David Enrich and Jo Becker from York Times.

“Deutsche Bank reported the transactions to a federal agency in charge of financial crime policing, according to three people who were familiar with the bank's internal processes. The report came as the bank began to seek signs that Mr Epstein was using his financial resources for sexual trafficking purposes. ”

  • JPMorgan cut it: "Mr Epstein appears to have moved his business to Deutsche Bank after JP Morgan Chase made connections with him. He was a client of JPMorgan's private banking division since the late 1990s to about 2013, five years after he pleaded with him. state prostitution charges. "
  • Raise alarm compliance officers: t "In addition to wealth management accounts, Deutsche Bank also provided loans to Mr Epstein and his businesses, three of whom were acquainted with relationships … In 2015 and 2016, money laundering compliance officers in the Deutsche Bank offices in New York and Jacksonville, Fla., Raised various concerns about the work the bank was doing with Mr Epstein. The employees were worried that the bank's reputation could be damaged if it were public that Mr Epstein is a client. "
  • Suspicious activity: "The compliance officers on at least one occasion gave rise to potentially illegal activity in one of Mr Epstein's accounts, including transactions in which money was moving outside the United States, two of whom said" t the people., but it is unclear whether the report was ever filed with a division of the Treasury Department of financial crimes. "

POCET CHANGE

DOJ launches major anti-thrust probe in technology: The Department of Justice announced Tuesday that it is opening an extensive review of the online market 's platforms,' unprecedented pursuit of the high – tech industry '. More calls could be made on Amazon, Facebook and Google, "colleagues Tony Romm, report Elizabeth Dwoskin and Craig Timberg. t

"The effort aims to explore widespread concerns expressed by consumers, businesses and entrepreneurs about search, social media, and some online retail services, according to the agency." Interesting interests closely with Google's dominance in the search, Facebook leadership in social media and Amazon's position as the country's ecommerce leader. All of them control large amounts over smaller competitors, the critics say. "(Jeff Bezos, Chief Executive of Amazon). , the Washington Post.)

  • Facebook requires a Zuckerburg guarantee. Ryan Tracy and John McKinnon, the WSJ, will be required to verify: "The Chief Executive of Facebook Inc. Mark Zuckerberg personally certifies that the company is taking steps to protect the privacy of consumers under an expected announcement by the Federal Trade Commission. Wednesday, a person with experience of the discussion includes a requirement that Mr Zuckerberg make the certificate for the FTC each quarter based on his personal information, the person said. A false statement in such a certificate will be subject to a possible penalty, said this person. "

A new opioid docs show shows the internal work of drug makers: t "New unsealed documents in a significant practice on Tuesday in Cleveland show the pressure on drug companies to sell opioids against many red flags during the height of the epidemic," Sari Horwitz report, Scott Higham, Aaron C. Davis and Steven Rich.

"Displays of the demonstrations – delegates on oaths, corporate internal emails and expert reports – show some employees' indifference concerns about the large number of pain pills streaming across the nation. In one exhibition, emails show that Purdue Pharma The executive received an order from a distributor for 115,200 oxycodone pills, which was almost double the average order of that distributor in the previous three months. the emails launched in October 2009.

One minute was allowed. "

FTC alleges that Facebook has attracted users: “The Federal Trade Commission plans to argue that Facebook was misleading users to handle their phone numbers as part of a wide-ranging complaint to a settlement ending the government's privacy probe, according to two people who are familiar with the t content, ”my colleague Tony Romm Reports.

“In the complaint, not yet released, federal regulators with Facebook issue earlier implementation of a security feature called two factor authentication. It allows users to request once-off password, which is sent by text message, each time they log on to the social networking site. ”

Amazon is entering real estate: “Amazon is going into real estate through a partnership with Realogy, the company announced Tuesday,” my colleague Taylor Telford says.

“It's not just a bit compatible: The biggest turmoil in retail and heritage company is suffering. But the partnership is able to compete with people like Zillow, Redfin and Opendoor, who have shaken the real estate world with their algorithms on instant purchase; and house purchase rationalization processes. "

MONEY ON THE BLOCK

Budget sale starts: “White House officials and congressional leaders dealt with a controversial budget on Tuesday, hoping to get concerns from curators and liberals before a crucial House vote this week,” my colleagues Erica Werner, Damian Paletta and Seung Min Kim's report. .

“The Treasury Secretary, Steven Mnuchin, met with the Seanad Republicans at lunch on Capitol Hill, stating that (Trump) was fully supportive of the transaction and would sign it as law. Republicans felt that Trump had twice last year after voting on a budget deal they thought he had supported, but not to withdraw the White House at the last minute. 'The four leaders (congress) and the president are on board fully with this, ”Mnuchin said to reporters as he left the meeting. Indeed, there appeared to be support for the legislation consolidating, although signs of unrest on both sides of the aisle remained abundant. ”

  • GOP stems from deficiency. Bob Costa and Mike DeBonis Post: "The deal with Trump after years of freedom from Republicans claiming that they have fiscal responsibility is a significant sign, describing the president's widespread hold of his party and ignoring the budget and the debt reduction. claimed as long priorities. The move has encouraged crises from many Democratic Parties, who have suffered a GOP routine by lecturing about spending and the federal deficit across two Obama terms in office. "

Warren introduces a student debt pardon plan: “Sen. Elizabeth Warren, D-Mass, introduced a Tuesday bill to relieve student loans for millions of Americans. Three quarters of borrowers would have reset balances to zero, ”reports CNBC Nova Nova.

“Under the Warren project, it was introduced with Rep James E. Clyburn, D-S.C., For $ 50,000 of his student debt with family income under $ 100,000. People who earn between $ 100,000 and $ 250,000 would qualify for forgiveness on a sliding scale – reduces the amount of cancellation under $ 1 per $ 3 that a person earns over $ 100,000. And those earning more than $ 250,000 would not get any debt relief. ”

MARKET RESULTS

The strategy changes for central banks. Renee Vollgraaff Bloomberg and his colleague: "In seeking to achieve its inflation targets, central banks around the world are discussing whether they need to change their goals. From the Federal Reserve to the Bank. T European Directorates, officials are studying their current strategies and the need to change them to revitalize inflation as it emphasizes the perceived levels of price stability. "

He hosted the climate change conference. Courtenay Brown Axios: "On November 8, the San Francisco Bank Federal Reserve – located in a place where its share of disasters is linked to global warming – hosts the first research conference to be considered the climate changed … t

"Climate change poses systemic risks to the US banking system, and the FED is demonstrating its desire to learn more. at the time the FED has increased pressure to follow other central banks and consider the threats to the global warming economy. "

DAY HANDBOOK

Today:

  • The House Small Business Committee conducts a hearing under the Taxation and Jobs Act.
  • The House Financial Services Committee holds a hearing on the proposed merger between SunTrust and BB&T.
  • The Finance Committee of the Seanad holds a number of pending nominations, including the nomination of Treasury General Counsel Brent McIntosh to be secretary in the department.
  • Facebook, Boeing, Caterpillar, AT&T, Anthem, Tesla, United Parcel Service and PayPal are among the significant companies that report their earnings, against Kiplinger.

Emerging:

  • The Financial Services Committee on Financial Technology Task Force conducts the hearing of alternative data on underwriting and credit scoring on Thursday.
  • Amazon, Anheuser-Busch InBev, Alphabet, T-Mobile, Intel, Bristol-Myers Squibb, 3M, American Airlines, Comcast, Unilever and Valero Energy are among the significant companies that report their earnings Thursday, against Kiplinger.
  • McDonald's, Goodyear Tire and AbbVie are among the significant companies that report their Friday earnings against the Kiplinger.

THE FUNCTIONS

From Tom Toles An Post:

BULL SESSION

(tTTTranslate) bb & t suntrust bank blend (t) too large for failure (t) financial crisis 2008-2009 (t) dodd-frank (t) financial regulations (t) justice department (t) technology justice companies

LEAVE A REPLY

Please enter your comment!
Please enter your name here

This site uses Akismet to reduce spam. Learn how your comment data is processed.