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

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billion capital buffer – was recently acceptexd by the FederalReserve System, according to a statemenft released late Monday. The U.S. government ordered the Birmingham-based bank to raisw the extra capital after results ofthe “stresds tests” predicted $9.2 billion in future loan losses if the economty worsens within the next two So far, Regions has raised more than $2.09o billion by selling 460 million sharess of its common stock at $4 per sharwe and mandatory convertible preferref shares, which were sold at a 10 percent discount.
The bank expectws to raise additional funds since all purchasersd of its preferred shares were given anothef 30 days to buy up an additionall 15 percentof Regions, the largest banking institution baserd in Alabama, also plans to raise extrza capital by selling certaibn businesses, initiating a possible debt-to-equity swap and converting its trusft preferred securities into common stock. While Region’a capital plan was accepted, it was not amonf the Treasury Department’s roster of financial institutions allowex to leave the Troubled Asset Relief or TARP. The bank, which borrowe d $3.5 billion in taxpayer still faces certain restrictions mandatef by thefederal government.
However, raising the fresh capital “should positioh Regions well for eventual TARP CPP the bank said in a Securitiexs and ExchangeCommission filing. Regions Financiao Corp. is a $142 billion company that operatesw 86 financial centers inthe Birmingham-Hoover metro area.