Southeast Banking Puts Together Second Plan for Recapitalization

Miami-based Southeast Banking Corp. said Friday it was preparing a second recapitalization plan to submit to the Federal Deposit Insurance Corp.

A bank spokeswoman told Reuters that the plan was similar to one submitted two weeks ago to federal regulators. "We are not commenting on what is in those plans until they are approved," the spokeswoman said.

In a regulatory filing earlier this month, Southeast said it envisioned either a merger or sale of equity, both of which would require federal assistance.

SunTrust Confirms Interest

Separately, SunTrust Banks Inc. confirmed it has joined the parade of banks and private investors going over Southeast's books.

Atlanta-based SunTrust had previously said it was not interested in making a major acquisition at this time. The Wall Street Journal reported Friday that SunTrust was conducting a due-diligence review of the $11.3 billion-asset company.

"We're taking a look, along with a lot of other interested parties," Robert Strickland, chairman of SunTrust's executive committee, said in an interview with the American Banker.

Mr. Strickland insisted the Southeast consideration does not represent a major shift in strategy for $33.1 billion-asset SunTrust, which has not made a major acquisition since purchasing Nashville-based Third National Corp. in 1986.

"We don't feel like we have to do anything right now," said Mr. Strickland, who added that SunTrust had not initiated the discussions with Southeast.

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