BB&T Corp Files Application To Repay TARP
14 May 2009 - 1:09AM
Dow Jones News
BB&T Corp. (BBT) Wednesday said it filed its application to
repay the $3.1 billion it had received from the U.S. Treasury
Department's Troubled Asset Relief Program.
The bank established a capital plan with a $1.5 billion stock
offering announced this week, $800 million in debt already raised
earlier, and $725 million in savings generated from cutting its
dividend.
That plan leaves the bank not only with enough cash to pay back
the government, but with a better capital structure all around,
said Christopher Henson, BB&T's chief operating officer.
"Our request for approval has been submitted," he said in an
interview with Dow Jones Newswires. It is unclear how long it would
take for regulators to approve the plan and the application, but
with the fresh capital in place and even after repayment, BB&T
would end up with a Tier 1 Common capital ratio "north of 8%,"
Henson said, double the minimum requirements established through
the stress test.
-By Matthias Rieker, Dow Jones Newswires; 201-938-5936;
matthias.rieker@dowjones.com