Regions Financial (RF) Gets Government Infusions

Get your fresh hot US taxpayer money.... Regions Financial (RF) joins the party along with a handful of others. All we need is BB&T (BBT) to partake and then all 3 of our banks are backstopped by the US government, with Hank P. as our fellow shareholder. RF continues to make dramatic almost daily 10-20% moves; this holding makes me sea sick.

• Regions Financial Corp. said Friday the U.S. Treasury Department will invest $3.5 billion in the bank as part of a larger effort to stabilize the credit markets and restore confidence in the nation's financial system.
• The investment will increase the bank's Tier 1 capital ratio to about 10.5 percent, well above regulatory standards for a "well capitalized" bank.
• Regions will pay the government a 5 percent dividend, or $175 million annually, for each of the first five years of the investment, and 9 percent after that unless the bank redeems the shares.
• The government will also receive 10-year warrants for common stock, giving the Treasury the opportunity to benefit from an increase in the company's share price.
• The announcement was made after the close of regular stock trading, sending the bank's shares up 84 cents, or 9.4 percent, to $9.78 in after-hours trading. The shares closed down 85 cents, or 8.7 percent, to close at $8.94 during the regular session.

Long Regions Financial, BB&T in fund; no personal position