https://www.zacks.com/stock/news/2984394/tfc-still-trails-its-2019-merger-targets-can-the-new-ceo-change-that
8 replies (most recent on top)
It is still mind blowing that John Allison was in favor of this merger. On a more pertinent note Brant Standridge was named President of Huntington bank today placing him next in line to be the CEO, SMDH.
There is no such thing as a merger of equals in corporate America. For accounting purposes, there has to be an acquirer. And regardless of how the transaction is presented, one bank ultimately takes over the other.
In this case, BB&T was the accounting acquirer. But the more telling question is who occupied the executive seats after the dust settled and “BAU” took place.
SunTrust buying BB&T with BB&T’s own money is the kind of thing that makes you wonder who was negotiating for whom. Only a fool could have let that happen.
The “MOE” will be remembered as a debacle and ridiculed in business schools for decades. KK and BR both got a legacy, alright. Just not the one either of them wanted.
But I suppose they can wipe away their tears with all those $100 bills they stacked from this disaster.
BBT gauged fees out of everyone. That fee rake was either not sustainable or now banned. They also used merger accounting tricks to cover their financial weaknesses. For whatever deficiencies SunTrust had, they didn’t have a business model from podunk.
I am confident in saying had KK not let this be a MOE and BBT execs were allowed to run the two companies as the acquirer this bank would be in a much better place today. But d-mbazz Kelly wanted a legacy and he got one, just not the one he thought he was getting. Suntrust would have been sold to someone eventually with a much better outcome and BBT would still be a regional powerhouse today.
@a1 if that is how you feel, invest in companies with that structure, don’t ask government to do the work for you.
@a1 because we don’t need anymore big government. The corporate by-laws would govern.
Many BOD members are still here from merger. They all need to be gone by the time Bill is gone. No exceptions!
The boards of public should be completely independent and the ceo should never be chairman of the board. Where is legislation to stop this?