Bailout Payback Begins; 5 Banks Repay Loans

Five 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.

About the Author

Linda McGlasson

Linda McGlasson

Managing Editor

Linda McGlasson is a seasoned writer and editor with 20 years of experience in writing for corporations, business publications and newspapers. She has worked in the Financial Services industry for more than 12 years. Most recently Linda headed information security awareness and training and the Computer Incident Response Team for Securities Industry Automation Corporation (SIAC), a subsidiary of the NYSE Group (NYX). As part of her role she developed infosec policy, developed new awareness testing and led the company's incident response team. In the last two years she's been involved with the Financial Services Information Sharing Analysis Center (FS-ISAC), editing its quarterly member newsletter and identifying speakers for member meetings.

Around the Network

Our website uses cookies. Cookies enable us to provide the best experience possible and help us understand how visitors use our website. By browsing, you agree to our use of cookies.