Synovus to get $973 million from Treasury
Atlanta Business Chronicle
Synovus has become the second Georgia bank to get approval for funding from the federal government’s Treasury Troubled Asset Relief Program (TARP).
Columbus, Ga.-based Synovus (NYSE: SNV) said late Friday it got preliminary approval for the sale of $973 million in preferred stock and related warrants to the U.S. Treasury under the Capital Purchase Program.
In late October, Atlanta-based SunTrust Banks Inc. (NYSE: STI) announced it would sell $3.5 billion in preferred stock to the U.S. Treasury.
Synovus said it plans use the cash to strengthen its capital base, enhance lending capabilities and strategic purposes such as buying other banks.
“Through participation in this program, we have the opportunity to gain valuable capital to invest in continued growth and economic recovery in each of the communities we serve,” said Richard Anthony, chairman and CEO of Synovus, in a news release. “We are especially focused on opportunities to carefully expand our lending efforts to consumers and businesses as we all work through these challenging economic times.”
TARP is designed to encourage U.S. financial institutions to build capital and increase the flow of financing to U.S. businesses and consumers. The U.S. Treasury has set aside $250 billion dollars to invest in the country’s strongest financial institutions.
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