First Union Corp. and KeyCorp have issued subordinated debt to infuse funds into subsidiary banks so that they meet new requirements for well-capitalized banks.

Meeting the Federal Deposit Insurance Corp.'s requirements for well capitalized -- 10% total capital ration, 6% Tier 1 ratio, and 6% leverage ratio -- will allow the banks to pay the lowest deposit insurance premiums and to bid for brokered deposits without regulatory approval.

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