Chillin' out till it needs to be funded
Suntrust ( NYSE:STI) is trading higher today even as media carries its summary results from the Stress test. The bank has a relatively strong Tier I Common 9.2% just below the Fed’s average 10.1% for the 19 banks that were tested by the Fed in the current series of Stress Tests for 2012. Also Suntrust may not be able to increase dividend bu tthe failure is unlikely to make it rescind the current dividend rate of 5 cents
As the Sacbee mentions, it will also be allowed to expire the current outstanding Trust preferred securities as they come up for renewal as for other banks like BB&T that have cleared the Comprehensive Capital Review to be annually conducted by the Fed.