Another round of bank investments

Four more banks have announced plans to sell preferred stock to the Treasury Department, in deals that will bring them nearly $550 million in taxpayer money.

TCF Financial Corp., of Wayzata, Minn., said it had been approved for an investment of $361 million.

The other three banks approved for government funds are all based in the Pacific Northwest.  Banner Corp., which has headquarters in Walla Walla, Wash., said it plans to issue $124 million in preferred shares to the Treasury Department.

Cascade Financial Corp., of Everett, Wash., is getting about $39 million, and Heritage Financial Corp., of Olympia, Wash., was approved for $24 million.

All four of the banks characterized their selection for the Treasury program as a recognition of their financial strength. Each noted that it was rated as "well capitalized'' under regulatory guidelines even without the new money.

The Treasury Department plans to inject $250 billion in capital into U.S. banks through the purchase of preferred stock. The money is coming from the $700 billion financial-industry bailout program approved by Congress last month.  

The Treasury Department initially planned to use the money to buy troubled assets from the banks, freeing up capital they could then use to make additional loans. But Treasury Secretary Henry M. Paulson Jr., who had broad authority over how the money is spent, decided that providing capital directly to the banks was a more effective approach.

The Treasury Department has so far approved more than $160 billion in investment in roughly 40 banks. Applications for the remaining $90 billion are due by Nov. 14.