BB&T 2010 Annual Report Download - page 33

issuers and networks for debit card transactions and limit restrictions on merchant discounting for use
of certain payment forms and minimum or maximum amount thresholds as a condition for acceptance of
credit cards;
• transferring the functions of the Office of Thrift Supervision (“OTS”) relating to federal savings
associations, including rulemaking authority, to the Comptroller of the Currency (“OCC”) within one
year of the enactment date unless extended by up to six months by the Secretary of the U.S. Treasury;
• implementing regulation of hedge fund and private equity advisers by requiring such advisers to
register with the SEC;
• providing for the implementation of corporate governance provisions for all public companies concerning
proxy access and executive compensation;
• increasing the FDIC’s deposit insurance limits permanently to $250,000 for non-transaction accounts,
providing for unlimited Federal deposit insurance on non-interest bearing demand transaction accounts
at all insured depository institutions effective December 31, 2010 through December 31, 2012 and
changing the assessment base as well as increasing the reserve ratio for the DIF to ensure the future
strength of the DIF; and
• reforming regulation of credit rating agencies.
Many of the provisions of the Dodd-Frank Act, including certain provisions described above are subject to
further study, rulemaking, and the discretion of regulatory bodies. As hundreds of regulations called for by the
Dodd-Frank Act are promulgated, BB&T will continue to evaluate the impact of any such regulations, such as
changes in regulatory costs and fees, modifications to consumer products or disclosures required by the CFPB,
the requirements of the enhanced supervision provisions, among others. Due to BB&T’s size, BB&T will be
designated as “systemically significant” to the financial health of the U.S. economy and, as a result, may be
subject to additional regulations by the Financial Stability Oversight Council (the “Council”), which will regulate
the systemic risk of the financial system.
General
As a bank holding company and a financial holding company under federal law, BB&T is subject to regulation
under the Bank Holding Company Act of 1956, as amended, (the “BHCA”) and the examination and reporting
requirements of the Federal Reserve. Branch Bank and BB&T FSB are collectively referred to herein as the
“Banks.” Branch Bank, a state-chartered commercial bank, is subject to regulation, supervision and examination
by the North Carolina Commissioner of Banks. BB&T FSB, a federally chartered thrift institution, is subject to
regulation, supervision and examination by the OTS, although under the recently enacted Dodd-Frank Act, the
OTS’s functions relating to federally chartered thrift institutions are to be transferred to the OCC within one
year of the July 21, 2010 date of enactment of the Dodd-Frank Act, unless otherwise extended by up to six
months by the Secretary of the Treasury. Each of the Banks also is subject to regulation, supervision and
examination by the FDIC.
State and federal law govern the activities in which the Banks engage, the investments they make and the
aggregate amount of loans that may be granted to one borrower, although BB&T FSB is entitled to federal
preemption of various state laws. Various consumer and compliance laws and regulations also affect the Banks’
operations. The Banks also are affected by the actions of the Federal Reserve as it attempts to control the
monetary supply and credit availability in order to influence the economy.
In addition to federal and state banking laws and regulations, BB&T and certain of its subsidiaries and
affiliates, including those that engage in securities underwriting, dealing, brokerage, investment advisory and
insurance activities, are subject to other federal and state laws and regulations, and supervision and examination
by other state and federal regulatory agencies and other regulatory authorities, including the SEC, the Financial
Industry Regulatory Authority (the “FINRA”), the NYSE Euronext, Inc. (the “NYSE”), and various state
insurance and securities regulators.
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