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Small banks face decision over TARP loans

  • With 80 lenders still owing the government $2B from TARP financing they received during the financial crisis, 27 of them have until the end of next week to repay the loans or face an increase in interest rates.
  • The quarterly dividend payment they would have to pay the Treasury is set to increase to 9% of the loan balance outstanding from 5%. The rise will hit another 32 banks by mid-May.
  • Banks that are returning the money include Buffalo-based Crazy Woman Creek Bancorp (CRZY) and Virginia-based First Capital Bancorp (FCVA).
  • However, other banks don't have the means to repay the loans just yet, increasing the risk that they might fail or have to sell themselves.
Comments (1)
  • bbro
    , contributor
    Comments (9330) | Send Message
     
    Unofficial Problem Bank List 12/24/2010 919 institutions with $408 billion in total assets

     

    1/31/2014 590 institutions with $195 billion in total assets
    5 Feb, 03:58 AM Reply Like
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