Regions Bank cuts 4 percent of work force - WMC Action News 5 - Memphis, Tennessee

Regions Bank cuts 4 percent of work force

BIRMINGHAM, Ala. (AP) - Alabama-based Regions Financial Corporation says it would trim 4 percent of its jobs in 16 states, including Louisiana, to save money. That means the loss of about 1,300 current and vacant positions.

Bank spokesman Tim Deighton said the cuts were related to Regions' acquisition of rival AmSouth Bancorp in 2006. Regions currently employs about 33,000 people.

News of the cutbacks became public a day after shareholders filed a federal lawsuit in Birmingham claiming Regions executives hid loan losses and sold their own shares of bank stock because they knew prices were headed lower.

The suit was filed by the Catholic Medical Mission Board, a New York-based health care charity that owned Regions shares in 2006 and 2007.

The organization is asking bank executives to repay the company the money they earned by selling Regions stock. 

Deighton said the suit lacked merit.

(Copyright 2008 by The Associated Press.  All Rights Reserved.)

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