Dec 24 Federal agencies are examining
allegations that Regions Financial Corp improperly
classified loans that went bad during the financial crisis, the
Wall Street Journal reported, citing depositions filed as part
of a civil lawsuit against the large southeastern U.S. bank.
Regions said in August that it received inquiries and
subpoenas from government authorities, primarily about
accounting matters from 2009 and earlier, and that its board was
investigating into the matter. ()
The inquiries about Regions Financial include subpoenas from
the U.S. Securities and Exchange Commission, Regions Chief
Financial Officer David Turner said in a July 20 deposition, the
Journal reported on Sunday.
The depositions emerged as part of a lawsuit brought in 2010
by a pension fund investor, who alleged that senior Regions
executives violated federal securities laws by misrepresenting
the bank's financial condition in 2008 and 2009.
Turner, the only current officer named in any of the
depositions unsealed earlier this month, also testified that
Regions had received inquiries from the Justice Department, the
A former executive William Teegarden, who testified on Sept.
17, said the Federal Reserve had questioned him about the bank's
practices, WSJ reported. ()
Teegarden testified that he also answered additional
questions from the Federal Bureau of Investigation, the Alabama
Banking Commission and the Special Inspector General for the
Troubled Asset Relief Program - the federal watchdog created to
oversee the government's investments in troubled financial
Teegarden, who worked in a special assets unit that
determined which loans were most likely to default, told
authorities that he knew of an attempt to delay the disclosure
of $150 million in soured loans, WSJ reported.
Regions' spokeswoman Evelyn Mitchell declined to comment.
Shares of the company were down 2 percent at $7.00 on Monday
on the New York Stock Exchange.