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UPDATE 2-Comerica, Susquehanna to raise funds to repay TARP
* Comerica to offer $800 mln of shares
* Susquehanna to raise $300 mln via share issue
* Shares fall after the bell (Adds background, updates stock movement)
March 8 (Reuters) - Comerica Inc (CMA.N), a large U.S. regional bank, said it will offer common shares to raise about $800 million as it intends to repay the U.S. Treasury's funds, sending its shares down 2 percent after the bell.
Separately, Susquehanna Bancshares Inc (SUSQ.O) said it will offer common shares to raise $300 million partly to support future acquisitions, including FDIC-assisted acquisition transactions or to pay back U.S. Treasury's funds.
Comerica said it intends to notify the U.S. government of its intention to redeem all 2.3 million shares of its Series F, Fixed Rate Cumulative Perpetual Preferred Stock, as issued to the Treasury under its Capital Purchase Program, it said.
In January, the company said repaying TARP funds is one of its priorities but did not give a time frame.
The U.S. Treasury came out with the $700 billion Troubled Asset Relief Program (TARP) last year. The Treasury has invested in more than 600 banks under the program, aimed at increasing lending.
The biggest banks repaid the taxpayer money last year and earlier this year, and with a few exceptions, they did so easily.
But most of the smaller banks are still left in the program, and owe roughly $130 billion to taxpayers.
These firms want to exit the program soon to avoid the related restrictions on executive compensation and dividend payouts, as well as to avoid immense public scrutiny.
Comerica, which has been hurt by credit problems tied to residential real estate developers, posted its fourth-straight quarterly loss in January.
In after-market trade, shares of Comerica fell 2 percent to $35.49, while those of Susquehanna Bancshares fell about 4 percent to $8.76 on Monday. (Reporting by Abhinav Sharma in Bangalore; Editing by Gopakumar Warrier)
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