March 5, 2009
Authored by: Bryan Cave Leighton Paisner
On March 3, 2009, the Treasury announced the completion of the sixteenth round of TARP Capital infusions. The Treasury purchased a total of approximately $395 million in securities from 28 financial institutions on Friday, February 27, 2009, and has now invested in 469 institutions, totaling approximately $196.8 billion.
Of note in this sixteenth round, three institutions received less than $1 million each: First State Bank of Mobeetie, Mobeetie, Texas, received $731,000; Green City Bancshares, Green City, Missouri, received $651,000; and The Victory Bank, Limerick, Pennsylvania, received $541,000. Integra Bank Corporation, Evansville, Indiana, received the largest infusion: $84 million.
This round marked the fourth consecutive round where less than 30 institutions received TARP Capital infusions. In contrast, in the eight rounds from the fifth (12/5/2008) to the twelfth (1/30/2009), only twice did less than 30 institutions receive TARP – 28 institutions in the sixth round (12/12/2008) and 7 institutions in the eighth round (12/31/2008). It is unclear what is causing this apparent slowdown in TARP Capital closings. It could be a change in policy or simply the result of the change in administration causing certain delays. We do, however, think that it is clear that this apparent slowdown has nothing to do with the amount of funds remaining within the TARP Capital program. There is no indication that the Capital program is near exhausting its allocated funds – approximately $50 billion still remains to be allocated under the TARP Capital Purchase Program.
Click here to view our updated TARP Map.
Click here to view our updated list of TARP Capital recipients and a description of our methodology in compiling the list.