Regions Financial Corp. will raise about $900 million in a common stock offering as part of a plan to exit the Troubled Asset Relief Program.
The Birmingham, Ala., company said Tuesday that it will use the capital, proceeds from selling Morgan Keegan & Co., and other available funds to repurchase $3.5 billion shares of preferred stock issued to the Treasury Department.
The repurchase of the preferred stock has to be approved by the Federal Reserve Board and the Treasury Department. It is expected to happen after
Regions anticipates that its Tier 1 capital ratio will be roughly 10.55% after the stock offering, Morgan Keegan sale and Tarp repayment are all completed.
