Sun Trust Must Raise Capital to Cover Possible Losses

SunTrust Banks has announced it will sell up to $1.25 billion of common stock and slash its dividend as part of a plan to satisfy the federal government’s order to shore up its capital by $2.2 billion. The Atlanta-based company said it would sell securities and other assets to raise an additional $300 million and may also convert existing debt to common shares. SunTrust has until Nov. 8 to carry out its plan.