SunTrust Banks, Inc. gets preliminary approval to sell to the U.S. Treasury the remaining $1.4 billion of preferred securities available to it under Treasury’s Capital Purchase Program.
Together with initially received $3.5 billion SunTrust reaches the eligible amount of $4.9 billion, or the full 3% of risk weighted assets.
As we now know from the most recent data, the economic situation is decidedly bleaker than was the case when we announced our initial, partial regulatory capital transaction under the Treasury program,” says James M. Wells III, chairman and chief executive officer, SunTrust. “Given the increasingly uncertain economic outlook, we have concluded that further augmenting our capital at this point is a prudent step, especially if the current recession proves to be longer and more severe than previously expected.”
L.D.