Treasury Invests $108 Million in 12 Banks
Twelve more banks have joined the pool of bailed-out institutions, receiving $108 million from the Treasury's "healthy" bank program, the Capital Purchase Program. The money went mainly to small and mid-size banks in the Midwest, with Missouri's Diamond Bancorp and Kentucky's Commonwealth Bancshares leading the pack with $20 million each.
Recent TARP funding has primarily gone to these types of smaller banks, which are increasingly facing trouble as the recession continues, the New York Times reports today. While some larger banks are looking to join the growing number that have repaid TARP, those not considered "too big to fail" continue to face growing losses and uncertainty.
The new commitments announced yesterday (below) bring Treasury's investment to $206 billion in 587 banks around the country.
- Commonwealth Bancshares: $20.4 million
- Diamond Bancorp: $20.4 million
- The Landrum Company: $15 million
- United Bank Corporation: $14.4 million
- Universal Bancorp: $9.9 million
- Premier Financial Corp: $6.3 million
- Illinois State Bancorp: $6.2 million
- BlackRidge Financial: $5 million
- Franklin Bancorp: $5 million
- F & C Bancorp: $3 million
- Fort Lee Federal Savings Bank: $1.3 million
- First Advantage Bancshares: $1.2 million
As big banks return their TARP money, Fannie Mae and Freddie Mac continue to be a drain.