First Third CEO looks forward to paying back bailout funds
Kevin T. Kabat, the chief executive of Fifth Third Bancorp said Tuesday the firm is looking forward to consulting with regulators about repaying the government’s financial bailout funds after the firm said it had completed a common stock offering which raised $1 billion.
The company said the funds would be used in part to repay the preferred stock and warrants issued to the U.S. Treasury as part of its Capital Purchase Program, pending approval of regulators.
The company also said an upcoming joint venture transaction with Advent Interantional would generate an additional $1.2 billion in Tier 1 common equity.
A government stress test last month indicated the firm needed a $1.1 billion capital buffer in order to be adequately capitalized in case of a worse than expected downturn in the economy.
Kabat, who also serves as the bank’s president and chairman, said the company “demonstrated strong access to the public common equity markets through a successful completion of this transaction.”
He said the company would consult with the regulators after the Advent transaction to seek repayment of the funds.
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