- The Washington Times - Tuesday, April 14, 2009

WASHINGTON (AP) - The Treasury Department said Tuesday it had disbursed another $22.8 million to five banks as part of the $700 billion financial rescue program.

The department now has paid out $198.8 billion to buy banks’ preferred stock. The government is buying preferred shares as a way to bolster the banks’ capital reserves so they have the resources to resume more normal lending to consumers and businesses.

The latest round of payments included $9.4 million to City National Bancshares Corp. of Newark, N.J., and $5.1 million to Capital Commerce Bancorp Inc. of Milwaukee.

Six smaller banks recently became the first to return the government’s money as public and congressional scrutiny of bailout recipients has grown. Banks need regulators’ approval to return the funds.

Several of the biggest bailout recipients _ including JPMorgan Chase & Co., Wells Fargo & Co., Morgan Stanley and Goldman Sachs Group Inc. _ have said they want to repay the government soon.

The new payments were made Friday but not disclosed until Tuesday. Under legislation Congress passed in October to establish the bailout fund, the government has two business days to report any new transactions.

The department on Tuesday also confirmed the release of $5 billion to special divisions of General Motors Corp. and Chrysler LLC to pay their parts suppliers.

The government last week said that it had opened up a $5 billion financing support program to help auto suppliers keeps parts flowing to GM and Chrysler.

In the new transaction report, Treasury said it had provided $3.5 billion to a new division of GM known as GM Suppliers Receivables LLC, and another $1.5 billion to a new Chrysler division, Chrysler SPV LLC.

Copyright © 2018 The Washington Times, LLC. Click here for reprint permission.

The Washington Times Comment Policy

The Washington Times welcomes your comments on Spot.im, our third-party provider. Please read our Comment Policy before commenting.


Click to Read More and View Comments

Click to Hide