This is one of the first rounds of the regional banks formally getting in line and formally receiving approval to participate in the $700 billion government TARP bailout package. Prior to this it had been the major banks and brokers which had been given clearance. Many of the healthy banks seem to be cautious to participate, but they also fear missing the boat in case things get far worse for them and they didn’t get in on the take.
There are likely others which have applied to participate or which havebeen given approval by the Treasury, but here is a brief list of thebanks we saw today issuing a "TARP" decision:
- Fifth Third Bancorp (NASDAQ: FITB) $3.4 billion (applied for, decision not announced)
- Huntington Bancshares (NASDAQ: HBAN) $1.4 billion
- KeyCorp (NYSE: KEY) $2.5 billion
- Northern Trust (NASDAQ: NTRS) for $1.5 billion
- Washington Federal (NASDAQ: WFSL) $200 million
What is very interesting here is how many banks have announced that they are reviewing the plan but have not made any decision as of yet. Many banks want the funds just in case, but the acknowledgment that the money comes with a price seems to be an issue for many of the managers at the more healthy regional banks.
There will likely be hundreds of banks which ultimately get involved in the TARP fund applications.
Jon C. Ogg
October 27, 2008
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