Another $722 million spoken for

Another wave of banks announced their participation in the Treasury Department's  capital investment program, as some even bigger financial-services companies readied their requests for federal aid.

FirstMerit Corp. of Akron, Ohio, said Wednesday that it had been approved for $248 million in Treasury Department money. Western Alliance Bancorporation of Las Vegas said it would get $140 million.

Signature Bank, announced that its previously disclosed request for $120 million also had been granted. And Taylor Capital Group Inc., which has headquarters in Rosemont, Ill., said it would get $105 million.

The Treasury Deparment plans to inject $250 billion in capital into banks and other financial companies through the purchase of preferred stock. The shares pay dividends of 5 percent for the first five years and 9 percent thereafter. The Treasury Department also gets warrants to buy common stock of those companies, which could produce a profit for taxpayers if the shares ultimately rise in value.

The money for the investments is coming from a $700 billion pool created by Congress for the Troubled Asset Relief Program, or TARP. The deadline for applications is Friday.

Porter Bancorp Inc., of Louisville, Ky., announced that it had been approved to sell $39 million in preferred stock to the Treasury Department. Encore Bancshares Inc., based in Houston, will get $34 million.

First PacTrust Bancorp Inc., of Chula Vista, Calif., said it would receive $19.3 million in capital. Bank of Commerce Holdings Inc., of Redding, Calif., confirmed that it would get  $17 million through the program.

Those five deals would represent an additional $722.3 million in spending under the TARP program.

Meanwhile, CIT Group Inc., a big commercial finance company, announced that it had applied to the Federal Reserve to become a bank holding company. CIT added that it would seek money from the Treasury Department through the TARP program.

"As the bridge between Wall Street and Main Street, CIT remains one of the few significant sources of liquidity for small and mid-sized businesses who are struggling to survive in today's challenging environment," said Jeffrey M. Peek, the company's chairman and chief executive.

American Express Co..'s conversion to a bank holding company was approved on an expedited basis by the Federal Reserve. The company reportedly asked the Treasury Department for $3.5 billion.

Raymond James Financial Inc., an investment and financial services company in St. Petersburg, Fla., also has asked for approval to make the switch.