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Monday, June 22, 2009

"A number of banks" Suspend TARP Dividends

by Calculated Risk on 6/22/2009 08:00:00 PM

From the WSJ: Three Banks Suspend Their TARP Dividends (ht jb)

Treasury spokeswoman Meg Reilly said Monday that "a number of banks" that got taxpayer-funded capital under TARP are no longer paying dividends to the government.
"Here the government has given the banks money at great terms, but the fact that they can't keep up with it is worrisome," said Michael Shemi, an investor at New York hedge-fund firm Christofferson, Robb & Co. "It tells you of the deep problems of community and regional banks."
The article mentions three banks by name: Pacific Capital Bancorp, of Santa Barbara, Seacoast Banking Corp. of Florida, of Stuart, and Midwest Banc Holdings Inc., of Melrose Park, Ill.

These banks received the funds in December.

Note: missing up to six dividend payments was allowed under the TARP agreement, so this isn't a default.