AmSouth Reaches Agreement with Department of Justice to Divest 52 Branches.BIRMINGHAM, Ala. -- AmSouth Bancorporation AmSouth Bancorporation was a bank holding company headquartered in Birmingham, Alabama, operated as a subsidiary of Regions Financial Corporation. AmSouth was previously known as First National Bank of Birmingham first organized in 1872. (NYSE NYSE See: New York Stock Exchange : ASO ASO arteriosclerosis obliterans. ASO 1 Administrative services organization, see there 2 Allele-specific–oligonucleotide hybridization 3 Anti-streptolysin O, see there ) announced today that it has reached an agreement with the Department of Justice to sell 52 branches located in Alabama, Mississippi and Tennessee with deposits totaling approximately $2.7 billion. The agreement resolves antitrust Antitrust The antitrust laws apply to virtually all industries and to every level of business, including manufacturing, transportation, distribution, and marketing. They prohibit a variety of practices that restrain trade. concerns raised by the Department of Justice after AmSouth and Regions Financial Corp. announced plans to merge. "We are dedicated to selling these branches to companies that share our commitment to our associates, our customers, and our communities," said Dowd Dowd is a derivation of an ancient surname which was once common in Ireland but is now quite rare. The name Dowd is an Anglicisation of the original Ui Dubhda, through its more common form O'Dowd. Ritter rit·ter n. pl. ritter A knight. [German, from Middle High German riter, from Middle Dutch ridder, from r , AmSouth's chairman, president and chief executive officer. "We would expect the purchasers to offer positions to the associates in these branches, and we will work hard to ensure that our customers and associates experience a flawless transition." The divestiture The breakup of AT&T. By federal court order, AT&T divested itself on January 1, 1984 of its 23 operating companies, which became known as the Regional Bell Operating Companies (RBOCs). is required by the Department of Justice to ensure that competition remains strong in certain areas where the companies are combining. The divestitures will include deposits, loans and the related premises and equipment. After buyers are identified, customers will receive information about the transition process, which is expected to occur in the first or second quarters of 2007. Customers of the affected branches will be notified but do not need to do anything at this time. Sale of the branches will be contingent on Adj. 1. contingent on - determined by conditions or circumstances that follow; "arms sales contingent on the approval of congress" contingent upon, dependant on, dependant upon, dependent on, dependent upon, depending on, contingent the completion of the proposed merger between AmSouth and Regions. The 52 AmSouth branches required to be divested are as follows: [TABLE OMITTED] Questions and answers about divestiture Q: What is divestiture? A: When banks merge, the Department of Justice and the Federal Reserve Board sometimes require the banks to sell, or divest To deprive or take away. Divest is usually used in reference to the relinquishment of authority, power, property, or title. If, for example, an individual is disinherited, he or she is divested of the right to inherit money. , branches and deposits in some markets to resolve antitrust concerns. This process keeps the merged bank from gaining an unfair advantage and ensures the market remains competitive. Q: How were branches selected for divestiture? A: The Department of Justice and the Federal Reserve made the decisions on which branches must be divested or sold. The divestiture includes deposits, loans and fixed assets fixed assets npl → activo sg fijo fixed assets npl → immobilisations fpl fixed assets fix npl → , such as premises and equipment. Q: What does this mean for the customer? A: Customers will receive the same great service from the same great bankers they have had in the past. AmSouth and the purchaser will work to ensure the transition is as smooth as possible. Signs and accounts will not change until the spring or summer of 2007. When the time comes Adv. 1. when the time comes - at the appropriate time; "we'll get to this question in due course" in due course, in due season, in due time, in good time for the actual transfer to occur, the customer accounts will be transferred to the new owner of the branch. Q: What does this mean for the associates at these branches? A: Right now, it's business as usual and there will be no immediate changes. Although buyers have not been identified, we would expect them to offer positions to the associates in these branches because that is the best way to ensure customers continue to receive excellent service. We will work hard to ensure that the customers and associates in these branches experience a flawless transition. About AmSouth AmSouth is a regional bank holding company with $54 billion in assets, 700 branch banking offices and more than 1,200 ATMs. AmSouth operates in Florida, Tennessee, Alabama, Mississippi, Louisiana and Georgia. AmSouth is a leader among regional banks in the Southeast in several key business segments, including consumer and commercial banking, small business banking, mortgage lending, equipment leasing Equipment Leasing is a financing option to lease equipment for a certain amount of time. Leasing Benefits
About Regions Financial Corporation Regions Financial Corporation (NYSE: RF), headquartered in Birmingham, Ala., is a full-service provider of retail and commercial banking, trust, securities brokerage, mortgage and insurance products and services. Regions had $86.1 billion in assets as of June 30, 2006, making it one of the nation's top 15 banks. Regions' banking subsidiary, Regions Bank, operates some 1,300 offices and a 1,600-ATM network across a 16-state geographic footprint in the South, Midwest and Texas. Its investment and securities brokerage, trust and asset management division, Morgan Keegan & Company Inc., provides services from over 300 offices. Additional information about Regions, which is a member of both the Forbes and Fortune 500, can be found at www.regions.com. |
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