Financial behemoth Branch Banking and Trust has announced it wants to go ahead with its purchase of Florida's BankAtlantic, even though there are several legal concerns in the way.
BankAtlantic, which is based in Fort Lauderdale, has $3.3 billion in deposits, $2.1 billion in loans and 78 branches. Unfortunately, it also has a parent company that is in trouble with the SEC over allegations that it misled investors with respect to loan risks.
The SEC is alleging that the parent company of BankAtlantic deceived its investors with regard to loans for commercial real estate and then falsified its records to make it appear as though the fallout from the scandal would be less than what it may actually be.
The chief executive of the company pointed out that a similar case brought against BankAtlantic back got dismissed by a federal judge back in April. Also, one notable analyst proclaimed that the charges against BankAtlantic's parent company "won't stick." Even so, the charges represent a red flag that BB&T was likely very careful to evaluate.
In situations like this, in which a business deal could be a great opportunity but also exposes the acquiring company to some pretty significant risks, it can be very important to have a diligent, thorough attorney on board. A lawyer who understands business and corporate law can help businesspeople make sure that the deal they are entering into will go as planned and can indentify risks of which is it crucial to be aware.
Source: The South Florida Sun Sentinel, "BB&T proceeding to buy BankAtlantic," Doreen Hemlock, Jan. 19, 2012
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