Tagged Articles

RMK 14 articles

Regions Financial eyes ‘any and all’ options to raise capital

A report by Reuters news service says Regions Financial Corp. CEO Dowd Ritter is open to “any and all” possibilities to raise capital in order to repay the U.S. goverment for the bailout money it loaned the institution. Regions, based in Birmingham, Ala., received $3.5 million in Troubled Asset Relief Program (TARP) funds. However, despite this pledge, it is unclear that Region’s brokerage arm, Morgan Keegan, is on the table. The Reuter’s piece says that despite the pledge, Ritter “dismissed the idea” of unloading Morgan Keegan. The bank suffered when its investment arm, headquartered in Memphis, Tenn., was the target ... Read More

RMK losses still piling up in arbitration rulings

A recent news release published on the Class Action Newsline reports Regions Morgan Keegan has suffered another defeat at the hands of a FINRA arbitration panel in Boca Raton, Fla., which awarded $431,000 to plaintiff Philip Richardson for his losses in RMK investment funds. This is the latest in a string of judgments against Regions Financial Corp.’s Memphis-based Morgan Keegan unit. Lawsuits filed on behalf of investors allege the RMK investment funds were misrepresented as low-risk high-yield funds, when in fact they were tied to the volatile mortgage lending industry. When the industry went bust, investors lost up to 80 ... Read More

Investors, 6 Morgan Keegan, 0

Regions Morgan Keegan has suffered it sixth straight loss in arbitration negotiations with investors who claim they lost substantial amounts of money when RMK misrepresented its bond funds. The suits claim RMK presented the bond funds as low-risk investments, when they actually were tied to the volatile mortgage bond market. When the subprime mortgage lending crisis reached a peak, many investors lost up to 80 percent of their money almost overnight. This week, Morgan Keegan & Co., a subsidiary of Regions Financial Corp., was ordered to pay $950,000 to investor Jerome Woods, whose claim included allegations of fraud, negligence and ... Read More

Helios bond funds set for liquidation

Three former Regions Morgan Keegan bond funds that were renamed under the Helios brand when Hyperion Brookfield Asset Management acquired them are now set for liquidation, pending stockholder approval. The troubled funds were acquired after suffering significant and sudden losses during the subprime mortgage crisis. Regions Morgan Keegan is defending hundreds of arbitration lawsuits regarding the funds, which were backed by risky mortgage-related assets. Investors allege the funds were represented as low-risk securities, but when the mortgage crisis hit beginning in the middle of 2007, the funds suffered staggering and sudden losses. Some funds dropped between 62 and 82 percent ... Read More

RMK investor awarded more than $250,000 to cover bad fund losses

Earlier this month, it was announced that Morgan Keegan & Co., the brokerage firm owned by Regions Financial Corp., would be required to repay an investor $267,711 for losses suffered by the collapse of Regions Morgan Keegan investment funds. According to CCNMoney, this is the largest bond fund arbitration award to date. Hundreds of investors lost significant amounts of money nearly overnight as a result of monies invested in mortgage-backed funds that collapsed in the subprime lending crisis. Lawsuits against Regions Morgan Keegan allege the funds were represented to investors as low-risk preferred stocks and corporate bonds, when in fact ... Read More

McCarver gets $100,000 in RMK claim

Noted baseball announcer Tim McCarver, who entered an arbitration case against Morgan Keegan & Co. in November 2008 claiming $1.6 million in losses has received $100,000 in compensatory damages, The Memphis Daily News reports. The Memphis native best known for his Major League career with the St. Louis Cardinals wanted to work with his hometown brokerage firm when he selected Morgan Keegan – based in Memphis and owned as a subsidiary of Birmingham, Ala. based Regions Financial Corp. – for his investments, the News says. However, his funds were placed in high-risk funds, resulting in unusually fast and severe losses. ... Read More

Regions selling off RMK Select Funds

Today the Birmingham Business Journal reported that Regions Financial Corp., which is headquartered in Birmingham, Ala., is selling off its 11 Regions Morgan Keegan (RMK) Select Funds. These funds are currently managed by Regions’ investment arm, Morgan Keegan & Co., based in Memphis. The funds will be sold to Pioneer Investment Managment, Inc., the Journal reports. The deal is pending approval by Regions shareholders, but if approved will remove the financial company from the mutual funds business entirely, according to the Journal. This news follows on the heels of other efforts by Regions to divest itself of investment funds following ... Read More

RMK fund set for liquidation

The Memphis Daily News recently reported that Hyperion Brookfield Asset Management, which in July took over administration of seven Regions Morgan Keegan funds under fire for misrepresentation, will liquidate one of the funds, pending shareholder approval. The fund in question is the Regions Morgan Keegan Select Short Term Bond Fund. Hyperion took over management of the Morgan Keegan investment arm of Regions after several funds suffered steep and sudden drops in value as a result of their connection to the subprime mortgage securities market. On Dec. 30, the Daily News announced that Hyperion had changed the names of seven former ... Read More

RMK funds change names to reflect new Helios brand

According to a report in the Memphis Commercial Appeal today, seven former Regions Morgan Keegan investment funds have changed their names, and six have new trading symbols. The changes reflect the change in management from Regions Financial to Hyperion Brookfield Asset Management, which took over the troubled investment arm in July. Each fund name now starts with Helio, which is Hyperion’s brand name. The Commercial Appeal quotes Marion Hayes, a spokesperson for Hyperion, as saying, “It’s not right for these funds to be named Regions Morgan Keegan funds when they’re managed by us.” The change affects four closed-end funds and ... Read More

Morgan Keegan buys investment bank

Today The Birmingham (Ala.) News reported that Morgan Keegan & Co., the investment arm of Regions Financial Corp., has purchased an investment bank, Burke Capital Group, based in Atlanta. The sale price was not released. Regions Financial Corp. is based in Birmingham. According to its company web site, Burke Capital Group is an independent investment banking firm that provides “superior corporate finance and mergers and acquisitions advisory services to financial institutions and middle market companies.” The company was founded in 1995. In 2006, the SNL Financial’s Bank M&A Scoreboard listed Burke at No. 1 among the Top Southeast regional financial ... Read More