110 banks have asked for $220B under bailout plan

By: By CHRISTOPHER S. RUGABER AP Economics Writer | WSLS 10
Published: November 15, 2008

WASHINGTON (AP) - At least 110 banks have requested about $220 billion from the Treasury Department's rescue fund, and many more are expected to have submitted applications before Friday's deadline.
The figures, from banks' own statements and analyst reports, indicate the requests are closing in on the $250 billion the Treasury set aside from the $700 billion fund to purchase stock in banks.
Analysts at Keefe, Bruyette & Woods estimated that 62 banks have received full or preliminary approval from the Treasury for $173 billion from the Troubled Asset Relief Program. The government said Monday that American International Group Inc. also would receive $40 billion from the program.
Another 48 banks have applied for about $6.5 billion, according to the Keefe, Bruyette & Woods report. Several banks that have filed applications said they haven't yet decided whether to accept any funds.
The tally doesn't include requests from four life insurance companies that are seeking regulatory approval to purchase savings and loans in order to become eligible for government funds.
One of those companies, Hartford Financial Services Group Inc., said it would be eligible to receive between $1.1 billion and $3.4 billion if its purchase of Federal Trust Bank is approved. Generally, only banks and savings and loans are eligible for direct investment from the TARP. AIG is the only nonbank company to receive such funds so far.
The total also doesn't include American Express Co., which said Monday it has restructured as a bank holding company, reportedly to seek up to $3.4 billion in funding.
Publicly-held banks were required to file their applications by Friday. Private banks have been given an extended, though unspecified, deadline.
Industry sources expect a flurry of last-minute applications will be filed Friday. Treasury spokeswomen on Friday wouldn't disclose how many applications have been filed or how much has been requested.
Nine large banks, including Bank of America Corp., Wells Fargo & Co., Citigroup Inc. and JPMorgan Chase & Co., received $125 billion last month.
Neel Kashkari, interim director of the bailout at Treasury, told lawmakers Friday that about 20 more banks would receive funds that day.
The Treasury has "approved dozens of applications from banks across the country," he said.
Several banks announced Friday that they have received funds under the plan, including Huntington Bancshares Inc., Comerica Inc. and KeyCorp.

110 banks have asked for $220B under bailout plan

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