BB&T Wins Federal Reserve Approval for 2013 Capital Plan

BB&T Corp. (BBT), North Carolina’s second-biggest bank, won the Federal Reserve’s approval for a new 2013 capital plan after its original proposal was rejected, the Fed said in a statement today.

BB&T’s initial capital plan was rejected in March based on a qualitative assessment, the central bank said at the time. The Fed’s statement today didn’t provide any information on how the new plan differed from the earlier one.

BB&T, led by Chief Executive Officer Kelly King, 64, said on March 4 that it had reevaluated how to calculate risk-weighted assets and determined changes were needed to meet regulatory guidance, the Fed said when it rejected the plan on March 14. The adjustments increased those assets and triggered a drop in BB&T’s risk-based capital ratios, according to the Fed.

The Winston-Salem-based bank’s shares have climbed 23 percent this year through yesterday, compared with a 27 percent jump in the 24-company KBW Bank Index.

To contact the reporter on this story: Laura Marcinek in New York at lmarcinek3@bloomberg.net

To contact the editors responsible for this story: David Scheer at dscheer@bloomberg.net; Christine Harper at charper@bloomberg.net

Press spacebar to pause and continue. Press esc to stop.

Bloomberg reserves the right to remove comments but is under no obligation to do so, or to explain individual moderation decisions.

Please enable JavaScript to view the comments powered by Disqus.