WASHINGTON—Ahead of this week’s hearing examining the proposed merger between SunTrust and BB&T, NAFCU encouraged members of the House Financial Services Committee to look at big bank riskiness and the impact a potential merger would have on consumers, community institutions and competition.
"While size should not be the sole factor in increased scrutiny, Congress is right to examine the riskiness and impact on consumers, community institutions, and competition such a merger would have," said NAFCU Executive Vice President of Government Affairs and General Counsel Carrie Hunt.
‘Bad Behavior’
Hunt's letter to the committee also pointed out that bad behavior by big banks has led to billions of dollars in fines from regulators, including a $550 million fine to SunTrust from the CFPB in 2015. But instead of addressing internal issues, Hunt noted, "banks have attacked credit unions and challenged efforts by the industry to better serve their members in an effort to stifle competition."
In addition, NAFCU said it has been encouraging lawmakers to reconsider the potential benefits of a modern Glass-Steagall Act and the economic impact of excessive, unbridled risk-taking by Wall Street banks.