Regions Financial in Birmingham, Ala., has enjoyed a 33% surge in its stock price in the past yearlargely due to improved asset qualitybut a dark cloud still hangs over the $119 billion-asset company. Regions remains on the hook for litigation tied to Morgan Keegan, a brokerage and investment bank it sold last year to Raymond James Financial.
Regions agreed to indemnify Raymond James for all legal costs associated to the business. One analyst Christopher Marinac at FIG Partners estimates that those expenses could eventually shave 14 cents a share off Regions' earnings.
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