|Copyright:||Copyright Business Wire 2011|
|Source:||Business Wire, Inc.|
As part of the settlement, Morgan Keegan and Morgan Asset Management agreed to pay
Regions also announced that with these regulatory matters settled, and as part of its ongoing capital planning process, it has retained Goldman, Sachs & Co. to explore potential strategic alternatives for Morgan Keegan as Regions evaluates how best to manage its capital to increase shareholder value.
Regions President and CEO
“Regions is committed to continuing to provide a full range of products and services seamlessly to its customers, including through a continuing relationship with Morgan Keegan,” Hall said.
$210 millionpayment consists of: $200 millionpaid into two Fair Funds, one administered under instructions from the SEC, and another administered under instructions from the states, with $100 millionto be paid into each of the two funds; and
- A penalty of up to
$10 millionto be paid to those states that join in the settlement.
- The five states initially included in the settlement are:
Alabama, Kentucky, Mississippi, South Carolina, and Tennessee. The $10 millionstate penalty will be shared among any participating states.
- An Administrator will identify the investors in the Funds who suffered losses, evaluate investor claims and distribute the funds. The Fair Funds are available to investors in every state without regard to whether their state is participating in the settlement.
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