Alabama bank to pay $51M for faulty accounting
Washington • Regions Financial Corp. has agreed to pay $51 million in a settlement with federal and Alabama regulators over alleged faulty accounting of loans that inflated the bank’s income in financial reports.
Regions, based in Birmingham, Alabama, signed the settlement with the Securities and Exchange Commission, the Federal Reserve and Alabama’s Department of Banking. The SEC also agreed not to pursue legal action against Regions, saying the bank had cooperated with the agency’s investigation and taken significant steps to correct problems.
In addition, the SEC announced Wednesday it has settled related civil fraud charges with two former senior managers of Regions Bank and is pursuing its case against a third.
Regions Financial, the parent company, has about $118 billion in assets and operates in 16 states in the South, Midwest and Texas.