Treasury provides financial support to 43 banks

Tue Dec 23, 2008 4:42 PM EST

politics, business, banks, meltdown, treasury-department

Christopher S. Rugaber, AP Economics Writer

WASHINGTON — The Treasury Department said Monday that it has provided $1.9 billion to 43 banks as part of the government's $700 billion financial rescue program.

Buffalo, N.Y.-based M&T Bank Corp. received the most, getting $600 million from the Treasury in return for preferred stock and warrants. Fulton Financial Corp., based in Lancaster, Pa., received $376.5 million, the department said.

The department previously announced that it was providing the money but did not reveal the recipients' names until late Monday.

Some of the funds were granted to 20 privately held banks. A total of 34 private banks have now received funds from the financial rescue program.

So far, Treasury has invested more than $162 billion in 207 banks. The department set aside $250 billion from the bailout fund to be used for direct investments in banks.

The investments are intended to bolster banks' balance sheets and spur them to step up lending to counter the worst financial crisis to hit the country in 70 years. But critics contend that many banks are not using the money for that purpose.

An Associated Press survey earlier this month of 21 banks that received at least $1 billion each in government support found that none of them would provide specific answers on how the money was used.

Other companies have received preliminary approval to receive funds but haven't finalized the transactions. Last week, credit card giant American Express Co. said it had received preliminary approval for $3.39 billion in government money. And commercial finance company CIT Group Inc. said it had received approval to obtain $2.33 billion.

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{"commentId":4538635,"authorDomain":"frankblack"}

Frank Black

Well isn't that special. What are these greedy illegitimate babies doing with the money Mr. Skank Paulson?

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1 vote

#1 - Tue Dec 23, 2008 8:19 PM EST

{"commentId":4539988,"authorDomain":"sha-1"}

SH-2000

Why does American Express get help? UGGG!!!!!!!!!!!!!! Perhaps, a cut of their advertising budget would have been better.

{"commentId":4539988,"threadId":"452525","contentId":"2242262","authorDomain":"sha-1"}

1 vote

#2 - Tue Dec 23, 2008 11:02 PM EST

{"commentId":4546450,"authorDomain":"McKenica"}

McKenica

How many more of these banks are going to get money- money than they can not or will not account for the use of, while the auto industry is unfairly chastised for requesting a loan? It is ironic that those who know the least about building autos are demanding the most control over how the automobile companies are run, what they should build, etc. and where every dollar is going. Better the Democrat congress worry about the 700 Billion in giveaways to bail out Obama's and Clinton's pals in Fannie Mae and Freddie Mac. Where is an unbiased voice in the midst of the left-wing media????? I will say it again, the Emperor (OBAMA) has no clothes!! Stop pretending he has a clue.

{"commentId":4546450,"threadId":"452525","contentId":"2242262","authorDomain":"McKenica"}

#3 - Wed Dec 24, 2008 4:07 PM EST

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Treasury provides financial support to 43 banks

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More companies lining up for piece of bailout fund	apnews.myway.com	Tue Dec 23	1
GMAC transition reduces control for GM, Cerberus	Associated Press	Wed Dec 24	1
CIT to receive $2.33B from government program	Associated Press	Mon Dec 22	0
American Express gets OK for $3.39B from gov't	Associated Press	Tue Dec 23	1