Reply #7: Not true at all. Community Banks can apply for TARP, and many have.

[Phx_Dem]

Ed should do some research before spreading misinformation.


Independent Community Bankers Association, http://www.icba.org/files/ICBASites/PDFs/tarpfaqs.pdf

Q: Which financial institutions are eligible for the TARP Capital Purchase Program?
A: Generally, any bank, community bank, savings association, bank holding company or savings and loan holding company organized under the laws of the United States qualifies.

Q: If a financial institution cannot qualify for this program, will it be eligible to participate in other TARP programs?
A: Yes.

Q: What is the purpose of the program?
A: Federal agencies say participation in the low-cost capital program is designed to bolster financial strength and allow for prudent lending that may currently be constrained by current capital levels.

Q: What about community banks that do not issue senior preferred stock?
A: The application deadline for Subchapter C corporations was Dec. 8. Treasury is considering an application form and term sheet for Subchapter S corporation and mutual institutions at a later date and establish a reasonable deadline to apply.

Q: How do community banks apply to the CPP
A: You must consult with and submit an application to your primary federal regulator. The banking agencies have applicable information on their Web sites.

http://www.bailoutsleuth.com/ (scroll down for all the reports on Community Banks and TARP funds)