That's going to leave a mark.
Number of delinquent bailed-out banks rises
By Binyamin Appelbaum
Washington Post Staff Writer
Monday, December 21, 2009;
2:54 PM
A growing number of banks that received federal aid are failing to send
the government quarterly dividend payments, the Treasury Department
reported Monday.
Fifty-five banks failed to make dividend payments in November, a 67
percent jump over the number of delinquent banks three months earlier.
Although many of the largest banks have repaid federal aid, the
government still has more than $100 billion invested in more than 600
banks under its Troubled Assets Relief Program. The terms of the
investment require the banks to pay dividends to the government every
three months. The annual amount paid by each firm generally equals 5
percent of its federal aid.
A growing number of the recipients face financial problems and have
been unable to pay the government. Fifteen banks failed to make the
required payments in May, federal data show. The number climbed to 33
banks in August, and 55 banks that failed to make the dividend payments
due Nov. 17.
Most of the firms on the list are small, community banks. The
largest is CIT, which wiped out its $2.3 billion debt to the government
when it filed for bankruptcy earlier this year.
Treasury did not immediately return a call requesting comment.