Feds approve Regions' $2.5B capital plan - Orlando Business Journal:

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billion capital buffer – was recently accepted by the FederalReserved System, according to a statementr released June 8. The U.S. government orderexd the Birmingham-based bank to raise the extra capitak after results ofthe “streszs tests” predicted $9.2 billion in futures loan losses if the economy worsens within the next two years. So far, Regionz has raised more than $2.09 billion by sellint 460 million shares of its commonb stockat $4 per share and 10 percent of its preferreds stock, series B. The bank expects to raise additionak funds since all purchasers of its common and preferred shares were given another 30 days to buy up an additionalk 15 percentof shares.
Birmingham-based Regions also planzs to raise extra capital by sellingcertainn businesses, initiating a possibles debt-to-equity swap and converting its trust preferred securitieas into common stock. While Region’s capital plan was it was not among theTreasuryg Department’s roster of financial institutions allowed to leave the Troublec Asset Relief Program, or The bank, which borrowed $3.5 billion in taxpayee capital, still faces certain restrictions mandated by the federal government. raising the fresh capital “shoulsd position Regions well for eventual TARPCPP redemption,” the bank said in a Securitiese and Exchange Commission Regions Financial Corp.
(NYSE: RF) is a $142 billion company that is the sixth largest bank in the Orlando area with 56 branches andnearly $1.16 billionm in deposits as of June 30, according to the