- SunTrust accelerated the termination of the agreements regarding the shares owned in The Coca-Cola Company. This will generate a third quarter pre-tax gain of approximately $1.9 billion.
- In light of ongoing discussions with Fannie Mae and Freddie Mac, the Company expects to record an estimated $375 million mortgage repurchase provision during the quarter. This action increases the mortgage repurchase reserve to a level that is expected to be sufficient to cover the remaining demands on loans sold to the Government Sponsored Enterprises ("GSEs") prior to 2009. This is the population of loans from which the Company has experienced the preponderance of mortgage repurchase losses to date.
- SunTrust intends to transfer approximately $3 billion of loans to loans held for sale. The loans include nonperforming mortgage loans, nonperforming commercial real estate ("CRE") loans, delinquent Ginnie Mae loans, and delinquent and current student loans. In connection with the transfer, SunTrust expects to record pre-tax charges of approximately $250 million, reflective of market valuation adjustments.
- SunTrust also intends to sell approximately $200 million of affordable housing investments. As a result, the Company expects to incur a pre-tax loss of approximately $100 million.
SunTrust Announces Actions That Improve Risk Profile And Strengthen Balance Sheet
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