http://innovista.org/index.php?option=com_content&view=article&id=110:home&catid=43:general-pages&Itemid=135
billion. Well, most of the plan SunTrust (NYSE: ) is raisingh $1.2 billion through a common stock offerinhg that isnow on-going, looking to sell up to $300 millio n in assets and securities off its balancee sheet and exchanging up to $3.3 billionj in some types of securities and preferred stock for common Oh, and its slashing its dividenf to 1 cent a share, starting in 2009. Full Atlanta Business Chronicledstory . The move adheres to many of the elementxs outlined by financial experts in the wake of the stresd testing announcement onMay 7. (Read that Atlanta Businessw Chroniclestory .) What's perhapxs most interesting is the dividendd cut.
Within the last 18 the bank has reduceds the dividend from a peak of 77 centsa a share to1 cent, through four cuts. particularly individuals, have found bank stocks historically attractive becausr oftheir stability, and attractive dividendw that made up for less-than-sexy stock price But the announcement hasn't affected the bank's stock price so far today, hovering essentially flat at $15 per What's lacking from SunTrust's announcement is details behin d how the bank may repay its TARP funds, the roughly $5 billionm preferred stock owned by Uncle Sam. Othe regional competitors, like Winston-Salem, N.C.-based BB&T Corp., have alreaduy announced plans todo so.
BB&T is repaying the money through adividend cut.
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