SOURCE: Paragon Financial Limited

Paragon Financial Limited

November 17, 2011 08:16 ET

Regions Financial and Synovus Financial Look to New Revenue Drivers as Customer Revolt Continues

The Paragon Report Provides Equity Research on Regions Financial & Synovus Financial

NEW YORK, NY--(Marketwire - Nov 17, 2011) - Amidst a firestorm of customer backlash, US banks of all sizes are backing off the new monthly fees. Banks began instituting monthly fees in response to last year's Dodd-Frank legislation that limited the amount of money banks could charge merchants for individual transactions. Banks skirted the legislation by charging a flat monthly fee to use debit cards in order to recoup some of the losses. The Paragon Report examines investing opportunities in the Regional Banking Sector and provides equity research on Regions Financial Corporation (NYSE: RF) and Synovus Financial Corporation (NYSE: SNV). Access to the full company reports can be found at:

Moving forward, the move to drop monthly debit card transaction fees will certainly help the public image of regional banks. However, regional banks can ill afford further revenue stream losses and need to find new ways to generate capital. Bill Hardekopf, CEO of, stated that "banks are still losing billions of dollars in revenue from the interchange fee regulations."

In addition to charging fees to use debit cards, many banks added or increased fees for checking accounts and raised amounts customers must have in those accounts to avoid such fees.

The Paragon Report provides investors with an excellent first step in their due diligence by providing daily trading ideas, and consolidating the public information available on them. For more investment research on the regional banking sector register with us free at and get exclusive access to our numerous stock reports and industry newsletters.

Last month Regions Financial said that it is eliminating a $4 monthly fee it had started charging some debit-card customers. Regions reported third quarter 2011 earnings available to common shareholders of $101 million, or 8 cents per diluted share, driven by continued solid business performance and strong expense management.

Synovus Financial has become somewhat of a turnaround story this year. The regional bank posted its first quarterly profit in three years, helped by a steep drop in provisions for bad loans and a big securities gain.

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