BB&T gets $3.1B in federal funds
Atlanta Business Chronicle
BB&T Corp. is receiving $3.1 billion in federal funds as part of the U.S. government’s effort to add liquidity to the credit markets.
According to the U.S. Treasury Department, Winston-Salem, N.C.-based BB&T (NYSE: BBT) is one of 21 banks to receive a share of more than $33.5 billion during the second round of payments from the government’s $700 billion bailout plan for the U.S. banking system.
BB&T has a 4.5 percent market share in metro Atlanta, with 86 branches and $5 billion in deposits.
In the first round, issued in late October, the government pledged $125 billion to nine large banks, including Charlotte, N.C.-based Bank of America Corp.
BofA (NYSE: BAC), which is acquiring Merrill Lynch & Co. in a $50 billion deal, received $25 billion. In addition, Wells Fargo & Co., which is buying Charlotte-based Wachovia Corp. (NYSE: WB) in a deal value at $15.1 billion when it was announced, got $25 billion.
According to the U.S. Federal Reserve, the financial institutions will sell preferred shares to the U.S. government. In addition, the Federal Deposit Insurance Corp. will temporarily guarantee the senior debt of all FDIC-insured institutions and their holding companies, as well as deposits in noninterest-bearing transaction accounts.
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