Regions Financial says 'stress test' money near

Regions Financial Corp. said Thursday it is nearly finished raising the $2.5 billion in capital required by the government's so-called stress tests.

Regions Financial said it raised the funds through stock offerings and by selling its shares in Visa Inc. and other securities.

The capital requirements were part of the Federal Reserve's stress tests, formally known as the Supervisory Capital Assessment Program. The program was intended to ensure the nation's largest banks have enough capital on hand to weather a deepening recession.

In May, Regions Financial offered to exchange common shares for outstanding 6.625 percent trust preferred securities issued by Regions Financing Trust II. The offer is expected to settle June 22 and generate $172 million.

Combined with previous measures, the funds will give Regions Financial the $2.5 billion needed to meet federal requirements.

"Our ability to raise this capital in such a short period of time indicates to us that investors recognize Regions' value and the strength of our franchise," said Dowd Ritter, Regions' chairman, president and CEO, in a statement.