Archive Links

Consumer Archive
CU System Archive
Market Archive
Products Archive
Washington Archive

News Now

Washington
113 Small, Mid-sized Banks Still Owe $2.7B in TARP, WSJ Reports
WASHINGTON (9/25/13)--More than 113 small- and mid-sized banks that received taxpayer funds through the U.S. Treasury's Troubled Asset Relief Program (TARP) are still on the hook for $2.7 billion in borrowed government money, the Wall Street Journal reported this week.

This debt is creating issues for the Treasury, which is looking to offload the stakes it took up in these small institutions. According to the Treasury, 79 of these banks are behind on their payments to the government, and 63 of those banks have missed 10 payments or more. In some cases, troubled banks are filing for bankruptcy, a move that wipes out any taxpayer-held equity when they fold.

As many banks continue to hold out on repaying their debts, and lending to their small business-owning customers, credit unions, which received no TARP funding, continue to advocate for measures that would help them increase their lending activities in surrounding communities.

Separate House (H.R. 688) and Senate (S. 968) member business lending (MBL) bills were introduced earlier this year. Both bills would increase the MBL cap from 12.25% of assets to 27.5%. The Credit Union National Association has estimated that lifting the MBL cap would create 140,000 jobs and inject $13 billion in new funds into the economy, at no cost to taxpayers. Both bills enjoy bipartisan support.

H.R. 688 has 115 House co-sponsors, and S. 968 is co-sponsored by 17 senators.
RSS print
News Now LiveWire
#FreeGasFriday courtesy of @tvfcu, TN #creditunions http://t.co/wDRFYJVlpz
12 hours ago
If you were unable to watch or attend @cuna 's @thehill Hill forum on Wed., you can now watch the archived version: http://t.co/FhUnp7HbU8
13 hours ago
Time is running out. If you haven't taken the #NewsNow readership survey, please click here now: http://t.co/4Gp6C2Wa4o
13 hours ago
African financial inclusion possible with mobile money: @IMFNews study http://t.co/0V5DTQToxY
14 hours ago
Louise Herring's birthday is Saturday. 105 years later, her legacy lives on through her kids http://t.co/oMqGADmo0d http://t.co/T3NmS9NqEY
15 hours ago