Prices Rise as Demand Strengthens For Troubled Assets

Banks saw modestly better prices for troubled loans last quarter thanks to stronger demand from vulture investors, home builders and other buyers.

Regions Financial Corp. and Synovus Financial Corp. were two asset-shedding banks that got higher prices, suggesting that lenders may have been wise to avoid dumping their bad mortgages and business loans in fire sales last summer. If prices keep firming, asset sales could accelerate through 2010.