Last week, Midwest Banc Holdings (MBHI), a community bank based just outside of Chicago, outlined an extensive capital raising initiative after suffering its second consecutive quarterly loss. The bank said it had applied for as much as $138 million under Treasury's Capital Assistance Program, or CAP, an extension of the original TARP. The bank received $84.7 million in TARP funds last December.
Citizens Republic Bancorp (CRBC), a Flint, Mich.-based bank that has suffered along with the local automotive industry, revealed in late June that it too was considering tapping up to $290 million from CAP, part of which would be used to redeem a portion of the Treasury's original $300 million investment made last December.
Experts say it seems certain that more small banks will follow the lead of Midwest and Citizens Republic.
By David Ellis, CNNMoney.com staff writer
Last Updated: August 6, 2009: 3:40 PM ET
http://money.cnn.com/2009/08/06/news/companies/tarp_banks/index.htm?section=money_topstories
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