Regions Repays $3.5B Bailout, Biggest Debt Outstanding

Regions Financial Corp. has repaid its $3.5 billion U.S. bailout, the largest debt outstanding from the U.S. Treasury’s much-debated Troubled Asset Relief Program (TARP).
Alabama-based Regions, the 10th-largest bank in the U.S., bought back preferred stock to exit the $700 billion rescue fund’s Capital Purchase Program, which provided bailouts to the nation’s banks at the height of the financial crisis.
In addition to the $3.5 billion repayment, Regions Financial has also paid taxpayers $593 million in dividends over the life of its TARP investment. Treasury continues to holds warrants to purchase common stock in Regions Financial – which will provide an additional positive return to taxpayers.
With today’s repayment, the overall positive return from TARP’s bank programs has now reached $18 billion, Treasury said.
Treasury invested a total of $245 billion through TARP’s bank programs and has recovered $263 billion so far through repayments, dividends, interest, and other income.
Regions was the largest recipient of bailouts among the 350 banks left in TARP, followed by Salt Lake City-based Zions Bancorporation, which announced plans to exit TARP last month. The remaining lenders owe taxpayers about $12 billion.

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