By: Detective Krum
Update 5/17/2009 SunTrust Bank’s rating has fallen again and is now rated “weak” and a “D+” and appears SunTrust Bank will need to be bought out or merged with another institution.
SunTrust Banks stock has gone from about 82 in 2007 down to 15 as of Friday May 15, 2009. Yet in January 2009 SunTrust Banks and Florida Trend magazine appear to have colluded to mislead SunTrust Bank depositors by publishing outdated material during the banking fiascos.
In addition, Pomerantz Haudek Grossman & Gross LLP (www.pomerantzlaw.com) (“Pomerantz”) has filed a class action in the United States District Court for the Northern District of Georgia against SunTrust Banks, Inc. (“SunTrust” or the “Company”) (NYSE:STI) and certain of its top officials and underwriters. The class action was filed on behalf of those who acquired SunTrust Capital IX 7.875% Trust Preferred Securities issued by the Company in its February 2008 public offering. The Complaint alleges violations of Sections 11, 12(a)(2), and 15 of the Securities Act of 1933.
Larry Prince (an insider at SunTrust) purchased a total of 40,000 shares on 2/13/2009. Over the last 5 years insiders have on average purchased 34,290 shares each year.
SunTrust Banks appears to be in trouble and you may want to consider another bank for your banking needs.