In an earlier article I wrote about the success of the TARP program, the $700 billion bailout government program that is officially ending on Monday. According to a Wall Street Journal piece, more than 600 banks are still holding $65 billion of the bailout funds. Many of these banks are too weak to repay the government funds.
The graphic below shows eight banks that haven’t repaid TARP capital:
At the height of the financial crisis, regulators allowed the Cleveland, Ohio-based National City bank to be taken over by PNC Financial Services (PNC). But three other Ohio-based lenders, KeyCorp (KEY), Huntington Bancshares (HBAN) and Fifth Third Bank (FITB) survived the crisis partly due to the TARP capital infusions.
Some small banks such as New York Community Bankcorp Inc (NYB), Chemical Financial Corp (CHFC) and Smithtown Bancorp Inc (SMTB) refused to participate in the TARP program due to the heavy restrictions that came with the loans.