Small banks want to wash hands of bailout money

Updated

Bankers really don't like the idea of more federal government control, so some banks are starting to repay borrowed federal funds as fast as they can. The first to do so are four regional banks, which repaid their loans yesterday, according to a report in The Washington Post.

Signature Bank of New York (SBNY), which took $120 million in bailout funds, was that largest to exit the loan program. The other three were Old National Bancorp of Indiana (ONB) ($100 million), IberiaBank of Louisiana (IBKC) ($90 million) and California's Bank of Marin Bancorp (BMRC) ($28 million). The Bank of Marin took a loan from another source to get rid of the added government control.

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