Federal regulators are billing a Regions Bank subsidiary more than $200 million following a lengthy, multi-state investigation into fraud charges that could force the country’s 12th largest bank to sell its brokerage and investment banking unit.
Regions, a 2,000-plus branch bank headquartered in Birmingham, Ala., has hired Goldman, Sachs & Co. to look at potential new options for Morgan Keegan, or “strategic alternatives” to counter the costly settlement that Morgan Keegan was handed by financial regulators, The Birmingham News reports.
One of those options is selling Morgan Keegan, the corporation's investment banking and brokerage firm that operates in 20 states and employs more than 3,000 people. Banking analysts say selling the subsidiary would be a positive move for the shareholders of Regions, the only bank of its size still receiving government assistance through programs created by the bailouts:
Regions’ announcement came Wednesday at the same time authorities issued details of the settlement, which is the result of an investigation centered on seven proprietary mutual funds sold by Morgan Keegan broker-dealers to more than 30,000 account holders. Those seven funds lost about $1.5 billion during the year ended March 31, 2008.
Morgan Keegan and one of its affiliates, Morgan Asset Management, were accused of making material omissions and misrepresentations in marketing materials and regulatory filings.
The firms also withheld information from the Morgan Keegan sales force, provided preferential treatment to certain customers and failed to adequately supervise their employees, according to the allegations.
The firms did not admit or deny the majority of the allegations.
Read more here.
Acadiana's Top 50 Private Companies
It would be an understatement to say Schumacher Group had a challenging year in 2013.
Hampton Toyota has been serving Acadiana as the premier Toyota dealership for more than 10 years. And now, the glossy Johnston Street dealership is looking forward to a makeover.
Even when Floyd Degueyter is on “vacation” he’s hard at work.
As the second largest metal heat treating company in the country, Analytic Stress Relieving Inc. has grown by leaps and bounds since its inception in 1979.
When the Prohibition era came to an end in 1933, Joseph R. Streva saw an opportunity to make a little extra money to supplement his day job.
When a hurricane hits, Brent Mouton doesn’t run. The convenience store chain owner is proof that the challenges of mother nature can almost break a business, but Mouton learned to grow out of temporary closure from near devastation in 2002 and of lost potential revenue.
By launching a Super PAC to end all Super PACs, our Top 50 keynote speaker hopes to change the game in Washington.
Oil Center-based private facility extends its offerings with special events venue in failed women’s store.
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The Heymann Center was transformed into a culinary adventure in mid-June for the EatLafayette kick-off event, A Taste of Lafayette, and for the third consecutive year, a sellout crowd filled the Cajundome Convention Center June 19 to hear LEDA chief Gregg Gothreaux’s State of the Economy report.
A look at recent hirings, promotions and other announcements from Acadiana's business community.
Anne Pyle puts a bow on a stellar, expectations-defying career with her latest venture.
The company currently has 10 branches throughout Louisiana, including an Ambassador Caffery location which opened last year.
Lawmakers have added $15 million to the attorney general's budget to pay for Louisiana's ongoing legal case against BP for damages caused by the 2010 Gulf oil spill.
The state's jobless rate rose to 5 percent in June from 4.9 percent in May. Louisiana's unemployment rate was 6.4 percent in June 2013.
Long-established private club opening special events venue in failed women’s store at Kaliste Saloom Road and Camellia Boulevard.
High-dollar legal teams are preparing to spar in federal court over the regional levee authority’s historic lawsuit against oil and gas companies, but a panel of volunteers could preempt those efforts when they meet in August.
May sales, the highest on record for the month at $534 million, increased 6.1 percent over May 2013.
Trendy Shi Shi is heading to the Ranch, longtime retail institution Partners’ Ltd. is relocating to Parc Lafayette, and ariel artist haven Vertical Barre is moving downtown.
There’s another debit/credit card scam making the rounds — the second this year — this time via a robo call purportedly from MidSouth Bank.
The 2014 Louisiana Annual Sales Tax Holiday exempts the first $2,500 of the purchase price of each eligible item for non-business use when the customer buys and accepts delivery of eligible property or places property on layaway.
The Lafayette-based home nursing firm will buy 14 home health agencies from a Tennessee company for $10 million in cash.