Some banks are turning down a bailout
Posted
Nov 14 2008, 02:57 PM
by
Kim Peterson
Rating:
A common topic on this blog is to bemoan all the companies getting in line for a federal bailout. But some don't want the money, believe it or not. This post is about the banks who are saying no thanks.
The government is buying shares of financial institutions, but will not take a role in running the companies. And while plenty of banks are participating in this "government investment plan," some are turning down the offer.
At least 29 banks said they won't be part of the program. The Footnoted blog highlights who they are and why they would pass on the bailout money.
BancFirst says it didn't want to get involved because it's planning to buy other banks soon. Congress is uneasy about financial institutions taking a bailout and then making large acquisitions of other banks. BankFirst also says it has a strong capital base and can go on with its business goals without government money.
Investors Bancorp also passed, saying that business is fine and that if it needed to, it could raise more money through a stock offering. TriCo Bancshares is also eyeing acquisitions.
And Rurban Financial says its performance is "well above the banking norm." The company also sounded downright leery about the offer, saying that banks that participate in the program will have a restricted ability to increase dividends or buy back shares.
"We do not believe it is advisable to restrict our dividend growth or capital management," said CEO Kenneth Joyce. Well said!
