Banks receive $165.3 billion so far under bailout

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Banks receive $165.3 billion so far under bailout
« Thread Started on Dec 10, 2008, 8:09am »

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Banks receive $165.3 billion so far under bailout plan
Posted: 06:21 PM ET
By David Goldman
CNNMoney.com

NEW YORK (CNNMoney.com) — Treasury sent out $3.9 billion in checks to another 35 banks last week as part of the government’s $700 billion financial rescue plan.

Under the Troubled Asset Relief Program, Treasury has allocated $250 billion of the bailout funds for capital investments in banks. After an application process, Treasury lends funds to banks in exchange for preferred shares and a high-paying dividend. The aim: to encourage strapped-for-cash banks to lend money to other financial institutions, promoting much-needed liquidity in the financial markets.

As of last Friday, the government has injected $165.3 billion into 87 banks. In the latest round, San Juan, Puerto Rico-based Popular, Inc. got the largest amount, receiving $935 million. South Financial Group, East West Bankcorp and Sterling Financial Corp. each received more than $300 million.