Regions Financial repays $3.5B bailout to US gov't

AP News

4/4/2012 1:24:38 PM - AP News

The U.S. government says Regions Financial Corp. has repaid $3.5 billion received during the 2008 financial crisis, the largest outstanding bailout owed by a bank.

The Treasury Department says the government has been paid back $337 billion of the $415 billion it lent financial institutions and automakers during the crisis under the Troubled Asset Relief Program.

The government is still owed roughly $78 billion, mostly from insurance giant American International Group Inc., General Motors Co. and Ally Financial Inc. The outstanding balance doesn't include the more than $150 billion that taxpayers have lost so far bailing out mortgage giants Fannie Mae and Freddie Mac.

Birmingham, Ala.-based Regions Financial also previously paid $593 million in dividends. Treasury said it could sell its warrants to buy Regions' stock to recover additional money.