Synovus Decides to Accept Fed Assistance

  Synovus is no longer “looking” at the prospect of participating in the federal government’s financial business bailout; the decision has been made to do it.  Tony Adams writes for the Ledger-Enquirer that Synovus recieved preliminary approval from the U.S. Treasury to sell $973 million of its preferred stock.

  When I broke the story on October 15th that Synovus was “looking” at the fed’s offer, I reported that I suggested to Synovus Chairman and Chief Executive Officer Richard Anthony that the sale would mean the federal government would own part of Synovus. He agreed that it would, but it would not be able to vote the stock because it would be preferrred and not common stock. 

  Richard Anthony, Chairman and CEO, Synovus    

Richard Anthony, Chairman and CEO, Synovus

  Anthony told Adams, “What this capital does for the system and the individual banks is during this period of weakness and instability, it provides a new dimension of strength that I think we can use to our advantage from an investment standpoint, from a customer standpoint.” 

  Over the long haul. this development could even help the federal government. There is a good chance that it will make a profit when it sells the stock later.

  You can read the Ledger-Enquirer story by clicking on this link.

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