This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Regions Financial: Morgan Keegan Loser

Stocks in this article: BAC JPM RF MS KEY FNFG

NEW YORK ( TheStreet) -- Regions Financial (RF) was the loser among the largest U.S. banks on Tuesday, with shares sliding 5% to close at $3.59.

The Birmingham, Ala., lender has been trying to sell its Morgan Keegan brokerage subsidiary, reportedly seeking $1 billion for the unit. Reuters reported late Monday that with the sale dragging since Regions announced in June that it would "explore potential strategic alternatives" for the unit, 10 Morgan Keegan advisors have left the firm, taking at least $694 million in assets under management with them.

Selling Morgan Keegan is a key piece in an effort by Regions to repay $3.5 billion in government bailout funds received through the Troubled Assets Relief Program, or TARP, in 2008.

The broad indexes were mixed following bankruptcy filings by American Airlines and its parent company AMR (AMR). The world's largest air carrier has been unable to come to terms on a union contract with its pilots for five years.

The news out of Europe was also mixed. Italy completed ¿7.5 billion in debt auctions, paying 7.89% on ¿3.5 billion in three-year notes, which was the highest rate paid since September 1996, and compared to a rate of 4.93% on similar debt auctioned just last month, according to Bloomberg.

Moody's Investor Service said ratings downgrades were likely for 87 European banks, as the various solutions being discussed to resolve the eurozone debt crisis "have the common objective of reducing very significantly the support provided to creditors and leave subordinated debt holders particularly exposed to exclusion from any support received."

The KBW Bank Index (I:BKX) declined 1% to close at 35.63.

Shares of Morgan Stanley (MS) were down 4% to close at $13.31, following a Wall Street Journal report that the company, along with Bank of America and five other companies were negotiating with MBIA (MBI) to end a dispute over the bond insurer's 2009 restructuring.

Bank of America (BAC) closed at $5.08, recovering from its intraday low of $5.04, which was the stock's lowest level since the dog days of March 2009.

Large banks seeing 2% declines included First Niagara Financial Group (FNFG), which closed at $8.44; JPMorgan Chase (JPM), at $28.56; and Goldman Sachs (GS), closing at $88.81.

1 of 2

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 17,804.80 +26.65 0.15%
S&P 500 2,070.65 +9.42 0.46%
NASDAQ 4,765.38 +16.9840 0.36%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs