STOCKS NEWS US-Colonial must raise capital before getting TARP

Stocks on the move [HOT-RTRS] Real-time Equity news [U E] [RESF/US]

U.S. stock market report [.N]
0920 ET 28Jan2009-Colonial must raise capital before getting TARP
------------------------------------------------------------------------------

Shares of Colonial BancGroup (CNB.N) plummeted in premarket trade on
Wednesday after the company said it needed to raise $300 million in capital
before it could qualify for funds under the Treasury's TARP program.

The bank said it was in talks with several investors, including SunTx
Capital Partners, and expects the capital raising process to be completed in
its first quarter. [ID:nBNG422175]

The stock tumbled 21.1 percent to $1.20 before the bell.

Reuters Messaging: ryan.vlastelica.reuters.com@reuters.net
0910 ET 28Jan2009-IMF cuts global growth outlook for 2009
------------------------------------------------------------------------------

The International Monetary Fund on Wednesday cut its global growth outlook
for 2009 to 0.5 percent. In November, it forecast growth of 2.2 percent.

For 2010, the IMF sees growth of 3 percent in what it called a gradual
recovery. The group said deflation was becoming a risk, and that deflationary
pressures may intensify the recession as interest rates stay near zero. If the
financial sector isn't remedied, it added, the risk of deflation will rise
significantly. [ID:nWEQ000611]

Reuters Messaging: ryan.vlastelica.reuters.com@reuters.net
0858 ET 28Jan2009-Futures up on earnings, hope for bank action
------------------------------------------------------------------------------

U.S. index futures soared on Wednesday, lifted by some positive earnings
results and optimism that the Obama administration was moving quickly to
stabilize the ailing banking sector. Investors were also watching the Federal
Reserve's monetary policy-setting Federal Open Market Committee, which began a
two-day-long meeting on Tuesday. [ID:nN28505189]

Dow Jones industrial average futures DJc1 rose 168 points while S&P 500
futures SPc1 gained 21.6 points and Nasdaq 100 futures NDc1 were up 28
points.

Reuters Messaging: ryan.vlastelica.reuters.com@reuters.net
0850 ET 28Jan2009-Goldman sees 50 pct dividend cut for BB&T in Q2
------------------------------------------------------------------------------

Goldman Sachs on Wednesday forecast a 50 percent dividend cut for BB&T Corp
(BBT.N) in the second quarter of 2009, saying the current payout ratio was
unsustainable in the current environment.

The firm slashed its price target on the company to $17 from $24.
[ID:nWNAB4681]

Reuters Messaging: ryan.vlastelica.reuters.com@reuters.net
0844 ET 28Jan2009-Govs must remove bad bank assets: Obama advisor
------------------------------------------------------------------------------

Laura Tyson, an economic advisor to the Obama administration, on Wednesday
said that in order to repair the financial markets, governments would need to
remove bad assets from banks and recapitalize them.

"The natural next step, which is real simple, you take the bad assets out,
the balance sheets are hit really hard, you recapitalize banks with different
rules, and they go out again and lend," Tyson said in a panel discussion at the
World Economic Forum. [ID:nWLA6069]

Reuters Messaging: ryan.vlastelica.reuters.com@reuters.net