Regions Financial Corp.,, announced today that it has repaid its $3.5 billion of federal loans under the Troubled Asset Relief Program (TARP).
Regions is one the biggest banks that still owed money from the TARP program, which Congress authorized in 2008 with $700 billion to help shore up the nation’s banking system, automobile manufacturers and financial services companies hard hit by the Great Recession.
Regions said today it completed its repurchase of $3.5 billion of Series A Preferred Stock issued under TARP’s Asset Relief Program. In addition to fully repaying the government’s investment, Regions has previously paid a total of $593 million in dividends. On an annual ongoing basis, the repurchase eliminates the payment of $175 million in dividends on these securities.
The repurchase follows Regions’ successful completion this week of its $1.2 billion sale of Morgan Keegan & Co. to Raymond James Financial.
Dave Flessner is the business editor for the Times Free Press. A journalist for 35 years, Dave has been business editor and projects editor for the Chattanooga Times Free Press, city editor for The Chattanooga Times, business and county reporter for the Chattanooga Times, correspondent for the Lansing State Journal and Ingham County News in Michigan, staff writer for the Hastings Daily Tribune in Nebraska, and news director for WCBN-FM in Michigan. Dave, a native ...