Monday, October 27, 2008

Bank Capital Infusions

I have mentioned in previous posts that there was no guarantee that banks would use the proceeds from the U.S. Treasury for extending new loans. Well, last week PNC announced that they would acquire National City with the new funds. Summaries below:

JP Morgan Chase


Citigroup, Inc.


Wells Fargo, Inc


Bank of America


Morgan Stanley


Goldman Sachs


Merrill Lynch


PNC Financial


Capital One Financial




Regions Financial


Bank of NY Mellon




Huntington Bancshares


State Street Corp.


Northern Trust Corp.


First Horizon Nat'l


City National Corp.


Valley National


Washington Federal


Provident Bankshares




In exchange for the cash, the banks will deliver preferred stock and warrants to the Treasury. The funds are part of the $700 billion that was authorized by the Emergency Economic Stabilization Act. The Treasury decided to allocate $250 billion to such infusions. The above list may not be complete because the banks have the discretion to announce the infusions or not.

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