Ten More Banks Join the Bailout
Another 10 banks signed up for the federal program to help bolster "healthy" banks during the economic downturn. The new participants, primarily small local or regional banks in the Midwest, will get a combined $85 million from the Treasury Department. Just how "healthy" some of banks in the program are is up for debate, as we noted on Tuesday.
In the latest batch of investments, a top recipient was University Financial Corp, a local bank whose mission is explicitly to serve economically disadvantaged communities in Minneapolis and St. Paul, Minn. It’s the Capital Purchase Program’s 14th community development bank, which combined have received one-tenth of 1 percent of the overall program commitments.
Here are the latest investments:
Suburban Illinois Bancorp, Inc. - $15 million
Duke Financial Group, Inc. - $12 million
Farmers Enterprises, Inc. - $12 million
University Financial Corp, Inc. - $11.9 million
Century Financial Services Corporation - $10 million
RCB Financial Corporation - $8.9 million
Biscayne Bancshares, Inc. - $6.4 million
Merchants and Manufacturers Bank Corporation - $3.5 million
Manhattan Bancshares, Inc. - $2.6 million
NEMO Bancshares Inc. - $2.3 million
Also, two small mortgage servicers joined the Making Home Affordable program for foreclosure relief; based on estimates of the number of modifications they will provide, Washington state’s First Federal Savings and Loan was allocated up to $770,000, and California’s Wescom Central Credit Union up to $540,000.
As big banks return their TARP money, Fannie Mae and Freddie Mac continue to be a drain.