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Some banks are turning down a bailout

Posted Nov 14 2008, 02:57 PM by Kim Peterson
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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!

Comments

 

why is not this head line new"s 85-c-9???????????????????????????????????

Every tax paying citizen too receive 25,000 incentive must be spent in thirty days excluding stock market investment and financial institutions(savings accounts).  This "bail-out" money is better spent(jump-start the economy) by the tax paying citizen than the Bush/Paulson(we're waiting for the world economy committee to tell us what to do) or the handful of "fatcat" CEO's who have bonused out with golden parachutes and wont spend that amount of money in their lifetime.

Not every bank had a choice in participating, some were forced to opt in and now have to find ways to invest their share to turn a profit.  The govenment should have just stayed out of the banking mess and let it run its course.  

Nobody mentions the $5,000 per second every day that we are pissing away in Iraq.

To Patrick, if you jnew what you were talking about, you would know it was the Democrats during the Clinton admin that said there were WMD. There is a video of many Dems, including Joe Biden that believed Iraq had WMD. That info was passed onto Bush. No President can do anything without the approval of Congress and its Congress that appropiates and spends the money, not the President. Just educated first Patrick before you post nonsense.

Carla: You are obviously misinformed. Bush and his intelligence agents started the drum beat for a war in Iraq long after Clinton  left office. Congess was then duped into supporting the war Honey.

I just laugh thinking of all those young spoiled rotten kids that won't get that BMW that daddy promised.  America is completely based on greed, excess, and glutony.  America made their bed, now sleep in it.  Good point Patrick about the $5000 dollars a second your country is mindlessly pissing into the wind.  Bring home the troops and save some damn money, instead of printing it off.  Ohh and one more thing.  I find it disgusting that bailouts are happening.  While the middle class struggle like hell to make ends meet, the taxpayer is paying the fatcats way.  The American dream is now a nightmare.  Start a business, take all the money out of the till every night, piss it away at the bar and see how fast your company gets helped out.  Some rich *** is eating lobster today on that bailout money.  Disgusting.

Wells Fargo didn't want the money either...they were the only bank of the nine or ten of the largest US banks that met with the federal reserve behind closed doors, that said no!  They were told they really had no choice but to take the money.  Kinda makes sense though because the federal reserve needs a return on their investments, and if WFB was allowed to pass, people would stark flocking from the others to WFB to keep their money....good for them but bad for the others and the federal reserve.  

Bush isn't that good of a salesman. If congress is no smarter than that. They all need to go, including the new guy coming in. They passed (100%)the legislation that basically made it legal to gamble on the stock market, and look what happened to it.

Everyone had better wake up and see what is really going on. Americans oro years have lived beyond their incomes. Many have used their houses as a second income. Refinancing them every year. Many have used credit cards, like you never have to pay these back. Taken overpriced vacations. Purchased cars you did not need and othet high price toys. As American we only need to look in the mirrow to see who the guilty one is. Not the govenment.

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