The slow-motion unwinding of the government crisis-era rescue programs continues. Every week, the Treasury reports on the dwindling core of banks who have yet to return the capital they took from the government in 2008 and 2009. Last week, two banks returned about $101 million in cash to Treasury.
Park National Bank, based in Newark, Ohio, in December 2008, took $100 million as part of the Capital Purchase Program. On April 20, Park National raised $30 million by selling bonds to investors. It used that money, combined with $70 million in cash generated from operations, to repay Treasury. Treasury still owns warrants in the bank, which will likely generate another $5 million when they are sold.
Moscow Bancshares, parent company of Bank of Fayette County, based in Moscow, Tennessee, in January 2009 received $6.22 million in Capital Purchase Program funds. On April 25, it paid back $1.1 million of the total. It still owes about $5.1 million.
Together, the two transactions brought about $101 million into the government's coffers.
Daniel Gross is economics editor at Yahoo! Finance
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