To repay a $3.5 billion taxpayer bailout, Regions Bank has announced plans to sell $900 million worth of common stock, according to this article from Bloomberg Businessweek. While most of the biggest U.S. banks already returned bailout funds, Regions was among the worst performers in the KBW Bank Index (BKX) in 2008 and 2009 as defaults contributed to four straight years of losses totaling $7.7 billion for common shareholders, according to the article.
In January, Regions sold the Morgan Keegan & Co. brokerage unit to Raymond James Financial Inc., under terms that were expected to generate proceeds of $1.18 billion for the bank. Morgan Keegan was the subject of state and federal investigations and sanctions arising out of its misrepresentations and omissions in the sale of the Regions Morgan Keegan (RMK) family of bond funds. Investors in those funds should have received information from the regulators’ “fair fund” management company, A.B. Data, regarding how to apply to recover some or all of their lost investment through the fair fund.
If you or someone you know lost money in the RMK bond funds or in a Morgan Keegan investment, please contact the attorneys at The Frankowski Firm at 888-741-7503 to discuss your potential legal remedies.