The Treasury Department has approved public investments in 15 more banks over the past few days, adding nearly $1.5 billion to the total value of its announced deals.
The biggest beneficiary in the latest round of approvals is Colonial BancGroup Inc., which is based in Montgomery, Ala., and has branches in Alabama, Georgia, Florida, Texas and Nevada. It said in a press release that it was cleared to sell $550 million in preferred shares to the government.
Colonial said in late October that it lost $71 million loss for the third quarter, largely because of higher loss provisions for troubled loans. It took $121 million in chargeoffs, on top of $73 million the previous quarter. Its common stock fell more than 50 percent in one day after it reported its results. However, Colonial's shares have recovered some of that last ground since the company announced its acceptance into the Treasury Department program.
SVB Financial Group, of Santa Clara, Calif., will get $235 million in taxpayer money. It is the parent company of Silicon Valley Bank. SVB Financial reported profits of $27 million for the third quarter, off 29.1 percent from the same period last year.
United Bankshares Inc., which has dual headquarters in Washington D.C. and Charleston, W.Va., was approved for $197 million in new capital. The company has operations in four states and the District of Columbia. Its profits for the third quarter were down 24 percent from the previous year.
The Treasury Department plans to inject $250 billion in capital into U.S. financial institutions through the purchase of preferred stock that carries annual dividends of 5 percent for the first five years and 9 percent thereafter. The government also will get warrants to buy common stock in the companies, which could provide a return to taxpayers if their shares rise in value as the financial crisis eases.
The stock purchase program is part of the broader $700 billion Troubled Asset Relief Program approved by Congress in October.
Sterling Bancshares Inc., of Houston, announced Wednesday that it would get $125 million through the program, and Park National Corp., of Newark, Ohio, said it would get $100 million.
Bank of the Ozarks Inc., based in Little Rock, Ark., was approved to sell $75 million in stock to the Treasury Department. Flushing Financial Corp., of Lake Success, N.Y., was approved for $70 million.
StellarOne Corp., of Charlottesville, Va., said Wednesday that it was approved to sell $30 million in preferred shares to the Treasury Department. The First Bancorp, based in Damariscotta, Maine., announced Thursday that it was approved for $25 million.
Five more California-based banks also announced their acceptance into the program. Bank of Marin, based in Novato, Calif., will get $28 million in government capital, while First California Financial Group Inc., of Los Angeles, will get $25 million. Oak Valley Bancorp, of Oakdale, was approved to sell $13.5 million in shares to the government. Security California Bancorp will get $6.8 million, and Commerce National Bank, of Newport Beach, will get $5 million.
Connecticut Bank and Trust Co., of Hartford, Conn., said Thursday that it was approved for $5.4 million in new capital.
Just received this email, at least it may send a message?
What is WeWantOurBailout.org:
A national petition being presented to the U.S. Congress
open to the residents of The United States of America
18 years and older. We are requesting cash stimulus to help
the U.S. taxpayer get through these challenging economic times. The amount of money we are requesting will be equal to the amount of money the U.S. Goverment is spending on all corporate bailouts to be divided equally among all U.S. citizens 18 years and older.
Example:
a) $700 billion/Goverment Bailout Funds (1)
plus
b) $800 billion/Goverment Bailout Funds (2)
divided by
c) approx. 230 million adults 18 yrs. and older
equals
d) cash stimulus per person 18 yrs. and older
$6522.00
http://www.wewantourbailout.org
I think these bailouts are just money wasted. It's like investing in a bad business or a person that won't stop wasting money. That's what this is. It's putting money into a system that has been flawed for many years. This shows some good stuff regarding this, especially the article here with what countries are getting the biggest "bailouts"
Bailouts for Countries
http://www.gotoguy.com/?p=604
Bailouts in U.S.
http://www.gotoguy.com/?p=589