4 banks to use common stock to repay US govt

Four big US banks yesterday announced large common stock offerings and said they would use proceeds to repay funds received under the government's bank bailout program.

US Bancorp plans to sell $2.5 billion of stock, and is also selling $1 billion of debt. Capital One Financial Corp is selling roughly $1.75 billion of stock, BB&T Corp $1.5 billion and KeyCorp $750 million.

BB&T also reduced its quarterly dividend 68 percent to 15 cents per share from 47 cents, saving $725 million a year, following 37 straight years of dividend increases.