SunTrust Banks is planning to sell $2.1 billion in government-guaranteed, performing residential mortgages this quarter, after selling $325 million last quarter, to meet proposed Basel III regulatory liquidity coverage ratios.

"We currently plan to reinvest the proceeds of the government guaranteed loan sales into high-quality liquid securities," SunTrust chief financial officer Aleem Gillani said Monday on a conference call to discuss second-quarter results.

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