SunTrust Fined Again

Detective Krum

SunTrust is Fined Again

By: Detective Krum

The Financial Industry Regulatory Authority (FINRA) announced today that it has fined SunTrust Investment Services, Inc., $700,000 for supervisory violations relating to its fee-based brokerage business and to commissions on certain low-priced stocks. SunTrust Investment Services are no stranger to fines.

1. On 8/02/2007 SunTrust Investment Services was fined $ 400 for not renewing an application on time. The firm insurance license was not renewed.

2. On 7/30/2007 – SunTrust Investment Services advisory representative was not properly registered with the state as an investment advisory representative. They were fined $ 4,500 and sanctions were ordered.

3. On 8/7/2006 – SunTrust Investment Services violated an SEC rule and was fined $ 150,000. and censure.

Would it be characteristic for SunTrust Bank to follow in SunTrust Investment Services path?

On 7/22/2008, STI reported 2nd quarter 2008 earnings of $0.78 per share. This result beat the +$0.64 consensus of the 19 analysts covering the company and missed last year’s 2nd quarter results by -47.3%. The next earnings announcement is expected on 10/23/2008 and analysts are looking for $0.61 per share. We will have to see what SunTrust Banks comes in at.

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