DOW JONES NEWSWIRES
BB&T Corp. (BBT) announced it has received final regulatory
approval to repurchase the $3.1 billion of preferred shares and
warrants the government received last fall through its
capital-purchase program.
The Treasury Department announced earlier Tuesday that 10 of the
nation's largest banks have met the necessary requirements to repay
funds they received from the government's financial-rescue fund,
making way for $68 billion to possibly be returned to Treasury.
The names weren't disclosed, but The Wall Street Journal
reported they include American Express Co. (AXP), Bank of New York
Mellon Corp. (BK), Capital One Financial Corp. (COF), Goldman Sachs
Group Inc. (GS) and JPMorgan Chase & Co. (JPM).
"This is an important achievement for BB&T," said BB&T
Chief Executive Kelly S. King. "Repaying the government's
investment will give us greater flexibility to benefit
significantly from future opportunities that will be available as
we emerge from this recession. In addition, we will become even
more focused on the business of serving our clients, rather than
dealing with government distractions."
Many financial firms have been chomping at the bit to get out
from under the increased federal involvement that came with being
part of the Troubled Asset Relief Program. They included dividend
and compensation restrictions.
BB&T will pay $3.13 billion, which includes accrued and
unpaid dividends. The company will record a nearly $48 million
charge in the second quarter to account for the difference between
the amortized cost of the preferred stock and the repurchase
price.
BB&T last month announced plans to sell at least $1.5
billion in stock as part of its effort repay the Treasury
Department as it also announced a widely expected dividend cut. The
regional bank that serves the mid-Atlantic and the Southeast was
one of the lone holdouts of major bank that hadn't yet cut its
dividend to help raise capital levels.
The company's stock was up 4 cents at $21.97 in recent trading.
Shares are down 20% this year.
-By Kevin Kingsbury, Dow Jones Newswires; 201-938-2136;
kevin.kingsbury@dowjones.com
