Some banks are just saying no to bailout money…
The deadline for banks to apply for the Treasury Department’s Capital Purchase Program is just hours away and as we’ve footnoted before, banks have been busily filing both their applications with Treasury and 8Ks with the SEC announcing their applications and approvals of Treasury funds. The WSJ has a handy list to show you who’s getting what. So far, they count 60 banks that are on the receiving end of $214 billion and many more are likely to come in today before the 5 pm deadline.
But here at footnoted, we’re much more fascinated in the steady trickle of filings from banks that have chosen not to participate in the program. That’s right — they’re turning down the money! In our routine trawl of the filings, we’ve come across a dozen banks that have issued 8Ks in the past few days that essentially say “Thanks, but no thanks” to that taxpayer money. According to Keefe, Bruyette & Woods research, 29 banks had announced as of yesterday that they won’t be participating in the program.
Among the ones we’ve noticed are Bancfirst Corp. (BANF), which filed this press release in an 8K yesterday. In the release, Bancfirst notes that it would like to buy additional banks and that accepting the money would make that harder to do because “Congress has expressed concern about financial institutions accepting funding from the U.S. Treasury to fund the acquisitions of banks.”
New Jersey-based Investors Bancorp (ISBC) is also turning the Treasury down, saying that it has the ability to raise its own capital. California-based TriCo Bancshares (TCBK) also cited potential merger opportunities in the 8K it filed yesterday, with CEO Richard Smith adding that “those funds can be made available for others.” And, in its’ press release Defiance,Oh-based Rurban Financial (RBNF) sounded pretty defiant: “Our view is that some of the restrictions within the announced provisions of the Capital Purchase Program appear to limit our options. In our view, there also remain too many unknowns within the program for us to prudently enter the program.”
So while there’s likely to be more banks scurrying to make today’s deadline, there’s also some who, in the words of Nancy Reagan, are just saying no.
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November 14th, 2008 at 5:56 pm
Congratulations for just saing “No”. Clearly there are banks that understand their responsibility to run a business on a profitable basis and without Goverment help or interference.
November 14th, 2008 at 6:42 pm
With the rare exception, It only makes sense to “just say NO” The rest of us live and die as a result of being able to manage our balance sheets (or NOT)!
November 14th, 2008 at 7:23 pm
I will be doing buisness with banks and other companies who DO NOT TAKE FED BAILOUT MONEY!! And the ones that did, I c0nsider them socialistic and will never support them again knowingly!
November 15th, 2008 at 12:20 am
where can the entire list be obtained
November 15th, 2008 at 12:45 pm
@Maggie: We’re working on pulling that list together.
November 15th, 2008 at 1:23 pm
I agree. The morons running the government have been calling the hogs to come slop at the trough, and all the inept greedy have come a runnin’, as usual.
Obama, I don’t yet know what kind of a president your going to make, but be warned, you had better be many, many steps above the current crop of clowns in there right now.
If I can make it on social security, the fat wads in government can make it on a balanced budget, and stop spending like a town full of fools. And as I recall, a fool and his money are soon parted, mainly by the fly by night quick shuffle huskters that got themselves into this pile of crap, and now the moron in the fed want us to shovel them out of that crap they covered themselves with, and once released they fly away with a golden parachute, while laughing at all of us fools.
NO GOD DAMNED MORE!
I CALLED FOR THAT MORONS IMPEACHMENT, AND ALL OF THEM TO BE RECALLED FROM CONGRESS, AND YOU HAVE ALL TURNED A DEAF EAR TO ME SINCE 2000.
ARE YOU LISTENING NOW??? SUCKERS
November 15th, 2008 at 1:28 pm
SUUEEE. PIGGY PIGGY PIGGY. SUUEEE
November 15th, 2008 at 2:58 pm
I am tired of hearing how the tax payers need to bail out another company everday while the execs walk away with millions. How do we put a stop this insane strategy?
November 15th, 2008 at 4:46 pm
Well I’v been talking for years about who is the real enemy. It has always been the international banking comunity It dosn’t matter who the presedent is , or who is in congress. The banking community is running the show and puts in place ( throuogh their attornys ) whoever they want into the decision making positions. I want our next government to wake up to where our wealth is going. It’s not staying in this coountry , that’s for sure. Look at where the world wealth is now and this is your answer. Exon, Chevron, Shell, BP ………….and the rest. How many “enviormental laws” have been passed in the name of good conservation that were really in the intrest of price fixing? Who are leaders of the enviotrmental movement that are also connected to big oil and the world bank? Al Gore???
November 17th, 2008 at 8:57 am
I am in complete agreement and support of those who say “NO” to this offer. I work too hard myself to make ends meet and support my family, and what support to I get? A piddly relief check? Keep that money in the system, to ensure that I have social security when I retire. Of course, the government would probably find a way to spend it, before I see even a dime of it. And now, there is a potential bailout for the auto-makers, while they still get their fat year end bonus checks? I guess I am confused. Why not give some of their overstock of cars away to people who need them, or provide a tax discount for people who buy cars? While I am not a politician and do not have a degree, my experience and simply being human tells me that there should be some more provisions for consumers, than for the big businesses taking this bailout money, and still getting their HUGE bonuses. There is a clear lack of competence in those making these decisions. Perhaps the government knows it needs these big businesses support during future elections? Who knows.
November 17th, 2008 at 3:00 pm
This banks are saying “NO” is not because they are responsible & they know there business. They are now in deep shit & don’t want to disclose the darker side of there business which has been manipulative in such a extent that even Lehman brothers is very small in front of them.
They don’t want to disclose about there hidings & soon we will know once we see Chapter 11 filings. if don’t believe, just keep the note of those BANKS which has said “NO”.
Thanks
Jay