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.