Buyout firms circling Regions Financial’s Morgan Keegan brokerage unit lowered bids by at least $200mn thanks to deteriorating financing markets and the bankruptcy filings of MF Global. Thomas H. Lee Partner and Jeffrey Greenberg’s Aquiline Capital Partners submitted the highest offer at about $750mn. The group topped a joint bid from Carlyle Group LP and Blackstone Group. Bloomberg sources said previous offers valued the unit at more than $1bn. A deal hasn’t been reached and talks could fall apart as Regions is pushing both groups to raise their price, the people said. Alabama-based Regions has been planning to use proceeds from the sale to boost capital and pay back a $3.5bn U.S. bailout. Regions has indicated it plans to collect a $250mn dividend from Morgan Keegan prior to any sale, increasing proceeds from the business. Regions is among the biggest U.S. banks that have yet to repay the Treasury Department rescue. The company said in June it was exploring options for Morgan Keegan, which provides brokerage and investment-banking services. [Bloomberg, 11/3/11]