First Horizon National Corporation (FHN), the Memphis, Tennessee – based holding co. for First Tennessee Bank National Association led by Bryan Jordan, has received a subpoena from the US Securities and Exchange Commission.
“FHN has been subpoenaed by the conservator for two GSE investors in six securitizations in connection with an ongoing investigation which may or may not result in claims based on representations and warranties. Since the investigation is neither a repurchase claim nor litigation, the associated loans are not considered part of the repurchase pipeline and FHN is unable to estimate any liability for this matter. At the time this report is filed, FHN was a defendant in lawsuits by three investors in securitizations which claim that the offering documents under which certificates were sold to them were materially deficient. Although these suits are in very early stages, FHN intends to defend itself vigorously. These lawsuit matters have been analyzed and treated as litigation matters under applicable accounting standards. At September 30, 2010 and at the time this report was filed, FHN was unable to determine a probable loss or estimate a range of loss due to the uncertainty related to these matters and no reserve had been established. Similar claims may be pursued by other investors.
At September 30, 2010, FHN had not reserved for exposure for repurchase of loans arising from claims that FHN breached its representations and warranties made at closing, nor for exposure for investment rescission or damages arising from claims by investors that the offering documents under which the loans were securitized were materially deficient.”
Share action: Down $0.37, or (3.67%), to $9.72 in mid-day trading Monday. The stock is currently below its 50-day $10.64, and 200-day $11.98 moving average.
HFN recently nosedived from $11.50 to test and break the support located at $10.00 area.