Rediff.com  » Business » US govt buys $159 bn shares in 30 banks

US govt buys $159 bn shares in 30 banks

Source: PTI
November 18, 2008 16:26 IST
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The US government, under its $700-billion bailout plan, has purchased shares in 30 American banks for a total of over $150 billion, half of which have gone into Citigroup, JPMorgan Chase and Wells Fargo.

According to the latest transaction report of the Capital Purchase Program, the US Treasury Department has purchased preferred stocks worth $25 billion each in Citigroup,

JPMorgan Chase and Wells Fargo - three of the biggest banks hit by the worsening financial turmoil.

The government spent $158.56 billion for purchasing shares in the 30 banks, which included Bank of America getting $15 billion, while Goldman Sachs, Morgan Stanley and Merrill Lynch got $ 10 billion each.

Other major recipients of the funds under this program include Bank of New York Mellon ($3 billion), State Street Corp ($ 2 billion), Sun Trust Bank ($ 3.5 billion), BB&T Corp ($ 3.13 billion), Comerica ($ 2.25 billion), Regions Financial Corp ($ 3.5 billion), Capital One ($ 3.55 billion), KeyCorp ($ 2.5 billion) and US Bancorp (about $ 6.6 billion).

 In the first round of the program, the Treasury injected $125 billion for shares in nine banks - namely, Citigroup, BoA, Goldman Sachs, JPMorgan Chase, Morgan Stanley, Wells Fargo, State Street, Merrill Lynch and Bank of New York Mellon Corp.

The government has also purchased preferred stocks in banks like Bank of Commerce Holdings, 1st FS Corp, UCBH Holding, Northern Trust, Broadway Financial, Washington Federal, Provident Bancshares, Umpqua Holdings, First Horizon National Corp, Huntington Bancshares, Valley National Bancorp, Zions Bancorporation, Marshall & Ilsley and TCF Financial.

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