Colling, Gilbert, Wright & Carter Securites Fraud

Birmingham-based Regions Financial Corp., parent company of embattled brokerage firm Morgan Keegan, will cut its dividend as second-quarter profit decreased 54% as more home borrowers and builders missed loan payments. The stock price plummeted on the earnings report.

Like many other banks and brokerages, Regions has been hit hard by defaults in subprime mortgages, risky loans made available to least qualified borrowers.

"Credit quality deterioration is today's overriding issue for financial services companies, and Regions is not immune," said CEO Dowd Ritter. The bank announced it has slashed it's stock dividend in an effort to shore up its weakened capital position.

This is not a new story. (see today's blog entry regarding Wachovia Bank's earnings report). A similar tale of woe is unfolding at brokerages Charles Schwab and Morgan Keegan who's investments in subprime mortgage backed securities decimated the Charles Schwab YieldPlus Fund and Morgan Keegan RMK Funds and cost their investors millions of dollars.

If you have suffered losses involving any of the above entities, please contact us for information regarding how you may recover your losses.