Rochester,NY 8/22/2009 11:44:23 PM
SunTrust Banks, Inc.STI-$2.7 billion outstanding ; off-balance-sheet financings
SunTrust Banks, Inc
Atlanta’s SunTrust Banks is exposed to billions of dollars in liabilities from an off-balance-sheet business.
In June, Fitch Ratings downgraded the commercial paper lending arm of SunTrust Banks Inc., known as Three Pillars Funding LLC. Three Pillars provides some of SunTrust’s “select corporate clients” with an alternative financing source for trade and other receivables.
SunTrust is committed to lend almost $5 billion through Three Pillars, and now has $2.7 billion outstanding through it.
The downgrade hurt the ability of Three Pillars to fund itself, and SunTrust has informed investors that if the quality of Three Pillars’ assets were to decline, SunTrust might have to consolidate Three Pillars onto its balance sheet.
About Stock Einstein
StockEinstein uses proprietary technologies coupled with years of experience to uncover stocks we feel have the greatest potential for breakout performance. We utilize not only software, but time tested criteria to uncover these potential winners. When these benchmarks are reached or exceeded, our subscribers are immediately notified.
This service is free and available only to subscribers. Scroll to the bottom of this page to signup for free stock alerts and visit our site.
Disclaimer: Full disclaimer at http://StockEinsteain.com/disclaimer.php
IMPORTANT: Never invest in any stock featured in any press release, email or website unless you can afford the loss of your entire investment. Stocks and particularly penny stocks have the possibility for dramatic gains, and also losses. Neither StockEinsteain, nor any of its affiliates are registered investment advisors or broker dealers.
