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OTCBB Companies Receiving Public and Private TARP Capital

The Treasury’s sixth round of TARP Capital infusions included five more public companies companies that are traded on the Over-The-Counter Bulletin Board.  Three institutions received TARP Capital under the public company term sheet, while the other two institutions received TARP Capital under the non-public company term sheet.

As a result, it appears clear that the Treasury is willing to allow public reporting companies that are traded over the OTCBB participate in the TARP Capital program under either the public company terms or the non-public company terms.  We still haven’t seen any public reporting companies that are traded over the Pink Sheets receive TARP Capital funds, but one would presume that they will receive the same deference shown to OTCBB companies.

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Round 6 of TARP Capital Infusions

On December 23, 2008, the Treasury announced the completion of the sixth round of TARP Capital infusions.  The Treasury purchased a total of approximately $2.8 billion in securities from 49 financial institutions on Friday, December 19, and has now invested in 165 institutions, totaling $170.6 billion.  This leaves approximately $80 billion for the Treasury to invest under the TARP Capital program.

Round six marked the first time that funds were invested in institutions participating under the Treasury’s Non-Public terms.  These “non-public” institutions issued to the Treasury warrants, which the Treasury immediately exercised.  One institution, OneUnited Bank, of Boston, Massachusetts, qualified as a Community Development Financial Institution (a CDFI), eliminating the requirement to issue warrants to the Treasury.

Synovus Financial Corporation of Columbus, Georgia, received the largest infusion of the round, $967.9 million, while Monadnock Bancorp of Petersborough, New Hampshire, received the smallest infusion of the round, $1.8 million.

This round saw five new states, Colorado, Idaho, Iowa, New Hampshire, and Rhode Island,  join the ranks of states whose institutions have received funds under the TARP Capital program.  In total, 41 states and 1 U.S. territory are home to institutions that have received TARP Capital infusions.

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