SunTrust sells 35,000 shares of stock to Treasury

It’s official. The U.S. Treasury — and, technically, you the taxpayer— is now a part owner of Atlanta-based SunTrust Banks.

The company said Monday that it had sold $3.5 billion worth of preferred stock to Uncle Sam. The previously announced deal closed Friday.

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SunTrust Banks

This is the stock certificate issued to the U.S. Treasury showing that it is the owner of 35,000 shares of SunTrust stock.

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The transaction is part of the federal government’s $700 billion economic bailout program that’s designed to shore up the nation’s battered financial sector. Other large national and regional banks have struck similar agreements.

SunTrust executives have said they’ll use the government funds to bolster the bank’s capital base, boost lending and acquire competitors. SunTrust and the other participating banks must pay 5 percent returns for the first five years.

Despite the deteriorating economy and real estate market woes, SunTrust remains in relatively good financial shape. The bank posted a profit last quarter, beating Wall Street’s earnings forecast.

The government now owns 35,000 shares of SunTrust’s preferred stock.