Regions Financial Corporation's (RF) Arrogance
Regions Financial Corporation (RF) recently reported its seventh quarterly loss in two years of $155 million. Regions is the parent company of Morgan Keegan & Company, which has been under the gun for six mutual funds it managed and sold to its customers which lost roughly $2 billion in value from March 31, 2007 to March 31, 2008. The funds involved include the Select Intermediate Bond Fund; Select High Income Fund; RMK High Income Fund; RMK Strategic Income Fund; RMK Advantage Income Fund; and the RMK Multi-Sector High Income Fund.
As noted by John Archibald of the Birmingham News, to “celebrate” their $155 million quarterly loss, the bank flew its board, some managers and many of their spouses to New York City on their private jet for a board meeting. While the Regions’ $3.5 billion TARP debt remains unpaid and the firm posted yet again another loss, Regions top dogs stayed at the Ritz Carlton at Battery Park, a luxury hotel where corporate rates run from $95 to $7,500 per night, and feasted at the finest restaurants such as the Mario Batali project Del Posto, where wine and dinner costs $250 per person. In addition to being treated to the trip, the lowest paid board member received $142,875 for their hard work, which resulted in a huge quarterly loss.