Skip to comments.12 Wisconsin banks still owe TARP money
Posted on 04/22/2012 1:58:43 PM PDT by afraidfortherepublic
AnchorBank, 5 others behind on dividend payments to Treasury
The parent companies of 12 Wisconsin-based banks that took Troubled Asset Relief Program money from the federal government haven't yet repaid it, a new report shows.
In addition, half of them are behind on dividend payments promised to the U.S. Treasury in return for a TARP capital investment during the financial crisis in 2008 and 2009, according to a report by Keefe, Bruyette & Woods.
In all, 21 TARP allocations came to Wisconsin banks in that two-year span. The biggest were repaid last year when Marshall & Ilsley Corp.'s $1.7 billion was paid back as part of its acquisition by BMO Financial Group, and Green Bay-based Associated Banc-Corp repaid its $525 million to the Treasury in two steps.
The largest remaining TARP investment in the state is at Madison-based AnchorBank, which received $110 million in 2008. Anchor also is $16.7 million behind on dividend payments to the Treasury.
Because of its financial condition, AnchorBank, which lost $33 million in calendar year 2011, has been prohibited by bank regulators from making dividend payments to anyone, including the federal government.
Altogether, about $220.7 million in TARP money remains unpaid by Wisconsin banks. That amounts to less than 1.8% of the total $11.8 billion still not repaid from the original $204.9 billion invested through TARP's Capital Purchase Program, which was intended to stabilize the financial system during the crisis.
The $11.8 billion in unrepaid capital investments nationwide is spread among 348 banking institutions, the report said.
When TARP funding became available, many banks that took it expected the economy and the lending climate would be much further along than they are right now, said Jon C. Bruss, chief executive of Fortress Partners Capital Management in Hartland.
(Excerpt) Read more at jsonline.com ...
Wisconsin 12 Wisconsin Banks behind on repaying TARP funds ping
FReep Mail me if you want on, or off, this Wisconsin interest ping list.
Indeed. I was in a rather one-sided debate with one of the local banksters / statists who insisted that, among other howlers, all TARP money was not just repaid, but repaid quite some time ago.