Regions: Federal Money on Its Way

Regions Financial (RF Quote) shares jumped more than 5% Tuesday after the southern bank said the federal government had accepted its application for a government equity investment.

Regions, in a conference call to discuss third-quarter financial results, said that it "has been notified that it is eligible and does intend to participate in the capital purchase program announced by the Treasury Department on Oct. 13, 2008." The government last week said it would make $250 billion in preferred equity investments to shore up confidence in the banking system.

The equity investments are the most significant of several government initiatives intended to improve liquidity and confidence in the banking industry. ...