While BB&T’s $28 billion purchase of SunTrust will create the sixth-largest bank in the U.S., federal regulators are unlikely to view the combined company as too big to fail, a potential obstacle to mergers in the decade since the financial crisis.
The new firm, which will operate under a yet-to-be-determined name, will have $442 billion in assets, shy of the $500 billion threshold that’s considered a systemic risk and triggers the strictest level of scrutiny from the Federal Reserve and other government agencies, said Jaret Seiberg, an analyst with Cowen Washington Research Group.
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