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Published October 28, 2008 at 4:39 PM
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 So far 25 banks have won the support of the Treasury Department, which has deployed almost $160 billion in direct capital injections, usually in the form of preferred share purchases. It's widely speculated that these banks are not going to simply use the money to open the spigots of lending, but instead to do acquisitions. J.P. Morgan Chase & Co.'s CEO Jamie Dimon recently made it clear during an earnings call that he might use some of Treasury's $25 billion for acquisitions. Even smaller banks receiving funding such as City National Bank of Beverly Hills, Calif., may seek acquisitions too.
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While deals aren't what Congress had in mind when giving Treasury $700 billion for TARP, clearly Treasury Secretary Henry Paulson has given a tacit approval to such uses of the capital injections when Treasury handed $7.7 billion to PNC Financial Services Group Inc. in conjunction with its National City Corp. acquisition. However, in Treasury's defense, allowing healthier banks like PNC to pick off their weaker peers like Nat City could have the effect of stabilizing the financial system. You could say that these banks are the clean up crew.
Expect the list of banks to grow as they have until Nov. 14 to apply for Treasury support. - Matthew Wurtzel
| Selected banks participating in TARP to date |
| As reported by the Treasury and the companies |
Date announced |
Company |
Ticker |
Capital ($mill.) |
Oct. 13 |
Citigroup Inc. |
C |
$25,000 |
Oct. 13 |
J.P. Morgan Chase & Co. |
JMP |
25,000 |
Oct. 13 |
Wells Fargo & Co. |
WFC |
25,000 |
Oct. 13 |
Bank of America Corp. |
BAC |
15,000 |
Oct. 13 |
Goldman Sachs Group Inc. |
GS |
10,000 |
Oct. 13 |
Merrill Lynch & Co. |
MER |
10,000 |
Oct. 13 |
Morgan Stanley |
MS |
10,000 |
Oct. 13 |
Bank of New York Mellon Corp. |
BK |
3,000 |
Oct. 13 |
State Street Corp. |
STT |
2,000 |
Oct. 24 |
PNC Financial Services Group Inc. |
PNC |
7.700 |
Oct. 24 |
Regions Financial Corp. |
RF |
3,500 |
Oct. 24 |
First Horizon |
FHN |
866 |
Oct. 24 |
Valley National |
VLY |
330 |
Oct. 26 |
Washington Federal |
WFSL |
200 |
Oct. 27 |
Capital One |
COF |
3,550 |
Oct. 27 |
SunTrust |
STI |
3.500 |
Oct. 27 |
Fifth Third |
FITB |
3,400 |
Oct. 27 |
BB&T |
BBT |
3,100 |
Oct. 27 |
KeyCorp |
KEY |
2,500 |
Oct. 27 |
Comerica |
CMA |
2.250 |
Oct. 27 |
Northern Trust |
NTRS |
1,500 |
Oct. 27 |
Huntington Bancshares Inc. |
HBAN |
1,400 |
Oct. 27 |
City National |
CYN |
395 |
Oct. 27 |
United Commercial |
UCBH |
298 |
Oct. 27 |
First Niagra |
FNFG |
186 |
Total |
$159,675 |
Not all applications have recieved final approval
Sources: U.S. Treasury Department and companies |
See related post about banks using TARP funding for M&A from Deal Journal
See earlier story about boring banks being back in vogue from Dealscape
See earlier story about City National's TARP funding announcement from Dealscape
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