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Sunday, November 8, 
2:06 pm

Treasury's 25 garbage men

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garbage.jpeg 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






Comments

From: Matt,

How do I get some?


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