|
|
||
Smaller banks getting their share of $700 billion Treasury rescue program Date published: 12/18/2008
BY HOWARD OWEN The government's $700 billion rescue plan for banks isn't just for the big boys. It isn't even just for the poor boys. Part of the plan, $250 billion worth, has been set aside for capital injections for well-capitalized institutions, including a lot of regional and community banks. "This is a program for healthy banks, not a bailout," said G. William Beale, president and CEO of Union Bankshares Corp. "They're helping us try to take capital to stimulate the economy." This is how much some banks in our area are in line to get, with final action expected by the end of the year: StellarOne, based in Christiansburg, with 40 branches, all in Virginia, and with assets of $2.97 billion: $30 million. Eastern Virginia Bankshares, based in Tappanhannock, with assets of $1.03 billion: $24 million. Union Bankshares Corp., based in Bowling Green, with assets of $2.3 billion: $59 million. Virginia Commerce Bank, with assets of $2.66 billion: $71 million. If your bank is well-capitalized, why participate? After all, the money isn't a gift. The government buys preferred, non-voting stock, and the bank gives a 5 per- cent annual dividend for three to five years. The bank is supposed to buy back the stock between three and five years into the deal, and if it doesn't buy it back after five years, the interest rate goes up to 9 percent. Banks can ask Treasury for an amount equal to 1 percent to 3 percent of their total assets. "It was available; it was cheap. We can pay it back," said O.R. Barham Jr., president and CEO of StellarOne. "It will accelerate our ability to lend money. Liquidity is a big issue for all banks. We'll use it to make loans." Beale, whose bank announced its intention to participate on Monday, said the open market rate is 10 percent to 12 percent, as opposed to Treasury's 5 percent. He said that his bank is competing with others "in desperate need of capital," which drives up the interest rate for everyone. Still, some smaller banks are opting not to take the money. Patricia G. Satterfield, president and CEO and the Virginia Association of Community Banks, estimated that more than 50 percent of community banks with whom she was familiar were not taking part in the program.
Date published: 12/18/2008
How much $$$ did First American get from the bailout of Community Banks; today it was announced that Union Bank will Merge with them. First American Bank is somehow connected to the Ukrops store chain, I think the Ukrops own it out right. They have their branches in Major branches of their stores in the Richmond, Va area.
Beale, the Bowling green President is trying to "spin" the story bth ways.. The funds he got came from the Troubled Asset Recovery Program! You can'[t spin where the $$ came from Beale. If your bank wasn't troubled then why did it recently file in November 2008 for 60 Million in capitalization from the SEC??? Because write off loans increased 292% in the last quarter! Thats why, Union Bank must fit the description of a troubled bank to get the money. Don't come up with all this hocus pocus now.
Since Union Bank has just received 59 Million dollars of OUR money, they lower their outrageous fees.
Had been with them almost 20 years (until yesterday when I closed the account) and for the first time in 20 years one 7.00 overdraft plus 39.00 fee's caused 7 other checks to bounce resulting in a couple hundred dollars of fee's which they wouldn't do anything about.
|
|
|||||||||||||||||
