Wall of Shame: Regions Financial CEO Ritter
On Monday, Cramer added Regions Financials CEO C. Dowd Ritter to the Mad Money Wall of Shame, letting the numbers state his case.
Ritter took over at Regions , once it had merged with AmSouth Bank, on Saturday, Nov. 4, 2006. On Monday, Nov. 6, the stock opened at $37.66. Today it’s at $4.07, an 89% loss. While all banks have suffered through the credit crisis, at least BB&T, another Southern regional, is down “only” 49%.
Regions Financial operates in Alabama, Tennessee, Mississippi, Louisiana and Florida. Sure, the Sunshine State was one of the hardest hit by the housing collapse, Cramer said, but that’s no excuse for all the bad loans on Ritter’s books. About 9%, or $8.6 billion worth, is under stress, with $4.1 billion to homebuilders and another $3.7 in home-equity loans.
Regions got a C on the Treasury Department’s stress test and now has to raise $2.5 billion to satisfy the government. So far, the company has generated $1.85 billion thanks to a secondary offering on May 20 priced at $4 a share. Cramer’s take? He wouldn’t touch RF as long as Ritter was in charge.
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