Banks get cash advances from government
The United States Treasury is busy bailing out banks with TARP funds.
The Treasury seems to be determined to make good on its promise to report all the cash advances it gives to banks using bailout money. Today it reported that it has dispersed $1.15 billion between 42 banks within the United States.
Biggest cash advances
Banks in 25 different states got a piece of the Troubled Asset Relief Program funds. Flagstar Bancorp of Michigan received $266 million. The Treasury gave PrivateBancorp of Illinois $243 million. W.T.B. Financial Corp. of Washington and Anchor BanCorp of Wisconsin each benefited from the TARP money to the tune of $110 million.
Grand total
The Treasury started out with $700 billion in TARP money, which was approved last fall. Initially $350 billion was released to help stabilize the financial system, stimulate the housing market and encourage banks to start lending again. Congress granted President Barack Obama access to the remaining $350 billion last month.
“The Treasury said it has now invested $195.3 billion in 359 institutions in 45 states and Puerto Rico,” according to CNN Money.
New states take cash advances
Banks in two new states joined the ranks of financial institutions taking advantage of cash advances from the TARP funds. Nebraska threw its hat in the ring with Farmers and Merchants Bank. The Nebraska bank’s customers are mostly farms and rural businesses.
Wisconsin also made its first appearance on the bailout list with two local banks. Anchor BanCorp and Legacy Bancorp both received cash advances through TARP investment funds.
Related articles
- Review Board For Massive Financial Bailout Program Promised By Obama (huffingtonpost.com)
- The Bank Bailout is Broken (businessweek.com)
- New Bank Bailout Could Cost $2 Trillion (huffingtonpost.com)
That is an awful lot of money that’s already gone – and I know we’re on the hook for quite a bit more. I sincerely hope that the stimulus works, and I’m cautiously confident that it will.