Letter Agreement between SunTrust Banks, Inc. and Federal Reserve Bank of Atlanta Regarding Capital Augmentation
SunTrust Banks, Inc. agrees with the Federal Reserve Bank of Atlanta to increase its common shareholders' equity component of tier 1 capital by $2.16 billion by November 9, 2009. SunTrust will provide details on how it plans to achieve this increase by June 8, 2009. The agreement also states that certain mandatorily convertible preferred shares may count toward this equity increase, subject to approval by the Federal Reserve. This letter outlines SunTrust's commitment to strengthen its capital position within a specified timeframe.
Exhibit 10.1
| | James M. Wells III Chairman & Chief Executive Officer | SunTrust Banks, Inc. Mail Code 645 Post Office Box 4418 Atlanta, GA 30302-4418 Tel. XXX.XXX.XXXX |
May 6, 2009
Dennis P. Lockhart
President and Chief Executive Officer
Federal Reserve Bank of Atlanta
1000 Peachtree Street, N.E.
Atlanta, GA 30309-4470
Dear Mr. Lockhart:
SunTrust agrees that it will augment the composition of its capital by increasing the common shareholders equity component of tier 1 capital by $2.16 B by no later than November 9, 2009.
We understand that preferred shares that are mandatorily convertible under terms acceptable to you will count towards common shareholders equity, but only for purposes of this augmentation.
No later than June 8, 2009, we will provide you with information about how the company intends to accomplish this augmentation.
Sincerely,
/s/ James M. Wells III
JMW:lsd
