Treasury provides $54.8 mn to 10 banks under bailout
The Treasury Department said on Tuesday it has provided $54.8 million to 10 banks in the latest payments from the $700 billion financial rescue fund.
By Agencies |
WASHINGTON: The Treasury Department said on Tuesday it has provided $54.8 million to 10 banks in the latest payments from the $700 billion financial rescue fund.
The new investments, along with some recent repayments by small banks, mean the government has provided $198.5 billion to more than 540 banks under a program to buy preferred stock and bolster their balance sheets.
Among the latest recipients, Community First Bancshares Inc. of Harrison, Ark., received $12.7 million and First Capital Bancorp Inc. of Glen Ellen, Va., got $10.9 million. The smallest investment was $1.7 million to BCB Holding Co. Inc. in Theodore, Ala.
Five smaller banks last week became the first to return the government's money as public and congressional scrutiny of bailout recipients has grown, particularly after revelations that American International Group Inc. paid large bonuses to its executives despite receiving $182.5 billion from taxpayers.
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Banks need regulators' approval to return the funds. The Bush administration initially said the investments were intended for healthy banks that would be able to pay the government back.Several of the biggest bailout recipients ��� including JPMorgan Chase & Co., Wells Fargo & Co., Morgan Stanley and Goldman Sachs Group Inc. ��� have said they want to repay the government soon.
The new payments were made Friday but not disclosed until Tuesday. Under legislation Congress passed in October to establish the bailout fund, the government has two business days to report any new transactions.
Separately, Treasury said it has opened the bank rescue program to mutual holding companies, which are structured differently than most other banks. The deadline for mutual companies to apply is May 7.
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