SunTrust (STI) A TARP Double-Dipper


Another double dipper, this time SunTrust (STI), which announced today (via Calculated Risk) that it’s hitting up the TARP for an additional $1.4 billion, after having raised $3.5 billion back in November. The company doesn’t come right out and say that it’s already forced to go back to the well (cause that would look bad) rather it describes its initial payment as “partial”:

“As we now know from the most recent data, the economic situation is decidedly bleaker than was the case when we announced our initial, partial regulatory capital transaction under the Treasury program,” said James M. Wells III, SunTrust Chairman and Chief Executive Officer. “Given the increasingly uncertain economic outlook, we have concluded that further augmenting our capital at this point is a prudent step, especially if the current recession proves to be longer and more severe than previously expected.”

Mr. Wells added that “at SunTrust, we are acutely aware of the importance to economic stability of responsible lending by banks. This additional capital will enhance our capacity to continue to make good loans to qualified borrowers, work with homeowners, and pursue other opportunities that support economic stability, even as we manage through this difficult industry environment.”

Meanwhile, companies continue to raise money with FDIC support. The latest is American Express (AXP):

AP: American Express Co. is taking advantage of new government liquidity programs by raising billions of dollars in fresh capital, according to a regulatory filing submitted Tuesday.

American Express said it issued $5.5 billion in new debt as part of a guarantee program run by the Federal Deposit Insurance Corp., according to a filing with the Securities and Exchange Commission. The financial services firm, which is primarily focused on credit card lending, also had raised about $4.6 billion in capital as of Dec. 5, through the launch of a retail certificate of deposit program through its banking subsidiaries.