THE BASIS POINT

List of Banks Who Have Received Treasury Funds As of October 27, 2008

Below is a summary from CNBC of the banks who have signed up for the Treasury’s $250b in re-capitalization plan that’s part of their Troubled Asset Relief Program. This is beyond the initial nine banks who got $125b to kick start the re-capitalization plan. The $700b TARP program was first designed to handpick illiquid MBS to purchase from banks but as the credit crunch intensified in recent weeks, Treasury decided to put money directly into the banks. PNC Bank used $5.2b of it’s $7.7b from Treasury to buy National City.

This is not completely unproductive and not a violation of Treasury’s urge to “redeploy” their funds back into the economy, but the real intent (and context) of Treasury Secretary Henry Paulson’s “redeploy” comment was that banks should use these funds to make business and consumer loans—not necessarily to buy other banks. Buying other banks is useful, but arguably a longer-term way to eventually reach a recovery.

Fifteen U.S. banks have signed up for the government’s offer of a cash injection, in addition to the nine that joined the program initially …The Treasury Department plans to provide funds for 20 to 22 lenders in the current round of a $250 billion bank recapitalization program. A list of the additional 15 banks that have announced they will use the government funds follows:

PNC Financial Services $7.7 billion
Capital One Financial $3.55 billion
Regions Financial $3.5 billion
SunTrust Banks $3.5 billion
KeyCorp $2.5 billion
Comerica $2.25 billion
State Street $2.0 billion
Northern Trust $1.5 billion
Huntington Bancshares $1.4 billion
First Horizon National $866 million
City National $395 million
Valley National Bancorp $330 million
UCBH $298 million
Washington Federal $200 million
First Niagara Financial $186 million

West Bancorp said on Friday it was seeking shareholder approval to raise between $12 million and $36 million under the Treasury program. Fifth Third Bancorp said on Sunday it expected to receive Treasury approval for $3.4 billion.