VOL. 127 | NO. 165 | Thursday, August 23, 2012
Prosecutor Probes Ties Between Regions Financial and Fiderion
A federal prosecutor has opened an inquiry into business ties between Regions Financial Corp. and Fiderion Group LLC.
Regions is the second largest bank in Memphis and the third largest bank in metropolitan Knoxville based on deposit share, according to the Federal Deposit Insurance Corp.
U.S. Attorney Joyce White Vance asked the Birmingham bank to report about gifts, trips or vacations provided by Atlanta-based Fiderion and its CEO, James Norton III, press reports say. Vance, who is located in Birmingham, also asked the bank for details about loans made to the Atlanta firm.
Fiderion reportedly sponsored golf outings for Regions executives between 2002 and 2008. The firm also borrowed $1.9 million from Regions in 2009. Memphis companies are key pieces of Regions. Regions acquired Morgan Keegan & Co. in 2001 and Union Planters National Bank in 2004.
In 2006, Regions acquired Birmingham-based AmSouth Bank, which had earlier retained Fiderion. The Atlanta firm is an executive recruiter that reported its business increased after the AmSouth-Regions merger.
Following the merger, AmSouth's C. Dowd Ritter became Regions CEO. He was succeeded by Grayson Hall, the present CEO, who had been an AmSouth senior vice president.
Until then, senior executives in both Memphis institutions had prominent roles in Regions.
Allen Morgan, a Morgan Keegan founder, served as vice chairman into 2008.
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