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SunTrust Bank Closes 2 Banks By Merger

Detective Krum

Detective Krum

SunTrust Banks Closes 2 Offices

By: Detective Krum

SunTrust Banks closed two of its subsidiaries in July 2008:

  1. First National Bank of Gwnnett
  2. First National Bank of the South

Both of these were merged into SunTrust with assistance. As I looked into the other 6 banks within the SunTrust Banks, Inc {Holding Company} One had a C- rating, three had D ratings and two had E ratings which show SunTrust may be in serious trouble.

In some form or another, SunTrust has been around a long time however, current conditions do not look great for SunTrust. In looking at SunTrust’s derivative exposure I found about $ 270 million as of June 2008.

To understand the derivative I found an article on Marketwatch.com which I believe to be helpful to my readers. Think of this entire unregulated derivatives market like an unsecured, unpredictable nuclear bomb.

The fact is, derivatives have become the world’s biggest “black market,” exceeding the illicit traffic in stuff like arms, drugs, alcohol, gambling, cigarettes, stolen art and pirated movies. Why? Because like all black markets, derivatives are a perfect way of getting rich while avoiding taxes and government regulations.

Lehman, which employed 25,935 people at the end of August in 61 offices around the world, had a balance sheet totaling $786 billion as recently as February and it appears they handled SunTrust Banks too.

As Jonathan Weil asked here, “Can anyone give me a good reason why Lehman offices shouldn’t be treated as a crime scene now? Or why there has been no sign of any investigation by the Securities and Exchange Commission into any aspect of Lehman’s accounting or disclosure practices?” If Lehman was using shady accounting practices, what does that say about SunTrust? What about the reports SunTrust sends out to investors?

This chart shows SunTrust holdings and what they are rated.

SunTrust Bank Inc _ Holdings

SunTrust Bank Inc _ Holdings

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October 14, 2008 - Posted by | 1, Victory 1 News | , ,

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