Another bank has decided to return its bailout money and has announced a major stock offering to help finance the plan.
New York-based First Niagara Financial Group Inc. said it planned to sell $300 million in stock in order to, among other things, repurchase the $184 million in preferred shares and warrants it sold the Treasury Department under the Troubled Asset Relief Program.
A number of other financial institutions have said they were interested in paying back TARP money, citing bad press and concern about Treasury restrictions on executive pay.
First Niagara follows Goldman Sachs in planning a stock offering to help pay back the Treasury. The investment firm said last week it was considering a stock sale to pay back the $10 billion it received under the TARP program.
First Niagara's announcement came as it reported strong quarterly earnings and is preparing to take over 57 local branches in Pennsylvania it recently purchased from National City Bank.
New York-based First Niagara Financial Group Inc. said it planned to sell $300 million in stock in order to, among other things, repurchase the $184 million in preferred shares and warrants it sold the Treasury Department under the Troubled Asset Relief Program.
A number of other financial institutions have said they were interested in paying back TARP money, citing bad press and concern about Treasury restrictions on executive pay.
First Niagara follows Goldman Sachs in planning a stock offering to help pay back the Treasury. The investment firm said last week it was considering a stock sale to pay back the $10 billion it received under the TARP program.
First Niagara's announcement came as it reported strong quarterly earnings and is preparing to take over 57 local branches in Pennsylvania it recently purchased from National City Bank.
published April 13, 2009, 0 Comments
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