Round 6 of TARP Capital Infusions

December 23, 2008

Authored by: Bryan Cave

On December 23, 2008, the Treasury announced the completion of the sixth round of TARP Capital infusions.  The Treasury purchased a total of approximately $2.8 billion in securities from 49 financial institutions on Friday, December 19, and has now invested in 165 institutions, totaling $170.6 billion.  This leaves approximately $80 billion for the Treasury to invest under the TARP Capital program.

Round six marked the first time that funds were invested in institutions participating under the Treasury’s Non-Public terms.  These “non-public” institutions issued to the Treasury warrants, which the Treasury immediately exercised.  One institution, OneUnited Bank, of Boston, Massachusetts, qualified as a Community Development Financial Institution (a CDFI), eliminating the requirement to issue warrants to the Treasury.

Synovus Financial Corporation of Columbus, Georgia, received the largest infusion of the round, $967.9 million, while Monadnock Bancorp of Petersborough, New Hampshire, received the smallest infusion of the round, $1.8 million.

This round saw five new states, Colorado, Idaho, Iowa, New Hampshire, and Rhode Island,  join the ranks of states whose institutions have received funds under the TARP Capital program.  In total, 41 states and 1 U.S. territory are home to institutions that have received TARP Capital infusions.