SunTrust sells Coke holdings
SunTrust Banks Inc., the Atlanta-based bank that invested in Coca-Cola Co. in 1919, announced last week it has sold most of its Coke holdings for a $1.2 billion gain to help cover the costs of bad loans and to put other lingering effects of the financial crisis behind the firm.
SunTrust is cashing in a more than $2 billion Coca-Cola stake that was valued at $100,000 when a predecessor of the bank aided the beverage firm with its initial public offering. The crisis that struck almost a century later spurred the bank to seek ways to boost capital as losses from bad loans mounted. The transaction will boost third-quarter net income by about $750 million, or $1.40 a share.
“This is a big leap,” Gerard Cassidy, an RBC Capital Markets analyst, told Reuters news. “All of the major regional banks and money-center banks have been on the road to recovery; some have moved down that road more quickly than others. SunTrust was a laggard. This action accelerates the recovery process.”
TVA among top utilities
For the seventh consecutive year, the Tennessee Valley Authority has been named one of the top 10 North American utilities for economic development by Site Selection magazine.
In a recent edition, the publication recognized TVA’s fiscal year 2011 work with local power companies and regional, state and community partners to help attract or retain more than 43,000 jobs and leverage $4.9 billion in capital investment in TVA’s seven-state service territory. John Bradley, TVA’s senior vice president of economic development, said the federal utility has helped support efforts to retain or recruit 240,000 jobs and $30 billion in business investment in the region since 2007.