Regions Financial Corp (RF)
Financial holding company whose operations consist of banking, brokerage and investment services, mortgage banking, insurance brokerage, credit life insurance, commercial accounts receivable factoring and specialty financing.
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Excluding the 19 biggest banks that underwent the stress test, banks with nonperforming loans above 5% had combined deposits of $193 billion, according to Bloomberg data.
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Look at the footnote on the 10-Q. Their loan values are, according to the market, worth $22.8B less than is stated on their balance sheet. Shareholder equity is just $18.7B.
In other words, by mark-to-market rules they would be insolvent.
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positive earnings prospects are too remotes
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Housing and finance will still be in the dump for at least a year more.
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This bank is done.
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Obsene Commercial Real Estate Exposure.
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How long until BK?
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Risky MOE with AmSouth compounded RF's exposure to the damaged housing market areas in TX and FL. Limited focus over the past 3 years on aggressively growing their deposit base, therefore not well balanced and resulting in a poor cash position. Trading area has some very strong, regional banks that are more focused on dominating their local branch areas that RF is too late in attracting customers.
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The Fear Trade: Investors Pile into Gold and Treasuries
The Dow suffered its biggest one-day point drop in history (although not even close on a percentage loss basis) as investors moved out of stocks into traditional safe havens such as Treasuries and gold (GLD). The failure of Congress to approve the $700B bailout package stunned investors as lawmakers worked through the weekend and practically around the clock to put together a plan that was widely expected to pass. The Senate will return Wednesday night while the House meets again this Thursday following the Jewish New Year holiday recession.
In other signs of worry over a worsening global economic recession, the U.S. Oil Fund (USO) lost more than 10%, the Baltic Dry Index slipped to multi-year lows, the iShares Emerging Markets Index (EEM) was down over 11%, and the Market Vectors Steel ETF (SLX) was down over 16%. Very few stocks closed in the green today, but among stocks that I track BioSante Pharma (BPAX) surged by over 16% on over four times its average volume without any news releases to account for the move.
I plan to focus on the small and micro-cap biotech space since these companies trade in their own universe for the most part based on their clinical development activities regardless of the economy. I own shares of Cytori Therapeutics (CYTX), which had a mid-day surge in the midst of the market sell-off, but still ended the day in the red on light volume. Overall, I am still very cautious on the market and will keep most of my money in cash until the market stabilizes as the velocity of today's downturn around mid-day was unsettling.
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Regions Financial Corp has issued a bearish signal and presents a selling opportunity based on the stochastic indicator, which compares the current price of RF to its recent trading range. RF has recently experienced a sharp rise in price and is vulnerable to a price drop (because few buyers are left to drive the price up any farther).
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* Equity down from $40 to $8.
* Preferred Stock Trading at 10%.
* Debt trades in the 10-11% range, if you can sell it.
* Cut dividend by 75% in June.
* Needs to raise $2 billion, according to Sanford Bernstein.
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In trouble - Mish's blog
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"Worst Possible Business Model
Minyanville Professor Bennet Sedacca is writing about the business model of Keycorp and other banks. Let's tune in.
More on KEY and Others
What could be the worst possible model?
When a company pays out its entire EPS in dividends and then goes to market with a 9% preferred. Then it RAISES the common dividend. Come on!! Then it announces deteriorating fundamentals. Who is it?
Keycorp (KEY), Fifth Third (FITB), Regions Financial(RF) and Wachovia (WB).
What should they be doing?
Cut the dividend, lay people off and sell common equity while they can. If not, it could be curtains."
http://globaleconomicanalysis.blogspot.com/
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Sorry to say this is my bank, and given the number of paperwork errors and "sorry, we didn't get that information to you in time", I'm looking for a new one.
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they are a train wreck/poor management
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FED is looking for another scapegoat -- RF has some crap in FL, and may be next
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Regions is too highly involved in construction and realestate loans for the present environment.
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The financial market is just too shaky right now.
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Latest earnings are down and the company lost "credibility" with investors. However, for the longer term, the healthy dividend and potential for growth will pull this stock ever higher.

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