Bailout Payback Begins; 5 Banks Repay LoansFive banks say they have repaid millions loaned to them as part of the federal government's $700 billion bailout.
Iberiabank Corp., of Lafayette, LA; Bank of Marin Bancorp, Novato, CA; Old National Bancorp., Evansville, IN; Signature Bank of New York; and Centra Financial Holdings Inc. of Morgantown, WV say they have repaid $353 million and are the first institutions to repay the loans.
These five are the first to repay the loans and escape the toughening restrictions placed on participants, including executive compensation restrictions.
Along with repaying $353 million, the banks paid the government a total of $5.4 million in dividends, says the Treasury Department.
The bailout bill was passed by Congress after the financial crisis worsened in the fall. The program's goal was to inject capital in banks so that they would be in a better position to boost lending, a crucial ingredient to any economic recovery. About $200 billion has been loaned to banks so far.