Regions Financial Corp, a large U.S. southeast regional bank, agreed to pay $51 million to settle federal and state allegations it failed to account properly for souring commercial loans during the financial crisis, boosting its earnings. The settlements announced on Wednesday call for the Birmingham, Alabama-based lender to pay a $46 million fine to the Federal Reserve, and a $5 million fine to the Alabama Department of Banking. Regions also entered into a two-year deferred prosecution agreement with the U.S. Securities and Exchange Commission. The Fed and the SEC also brought civil charges against three former managers at the company's Regions Bank unit: Thomas Neely Jr, once a senior commercial credit executive; Jeffrey Kuehr, who led a problem loan workout department; and Michael Willoughby, who was chief credit officer. Neely is contesting the charges against him, and faces a possible $2.4 million fine from the Fed. Kuehr and Willoughby each agreed to pay $70,000 to settle
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