Another bank has withdrawn its application to received bailout money.
Despite mounting capitalization problems, North Carolina-based Bank of Granite Corp. decided not to follow through on its attempts to get funding under the Troubled Asset Relief Program, the Charlotte Observer reported.
Scott Anderson, the bank's chief executive, cited the fear of negative publicity as the reason for pulling its application to participate in the $700 billion bailout program.
"It's gone from the Good Housekeeping seal of approval to the scarlet letter," Anderson said. "Everybody who's calling me is saying, 'I wouldn't bank with you if you took some of that bailout money.'"
However, the Observer reported that Bank of Granite has been struggling to maintain adequate capital ratios, recently lost a line of credit with another bank, and is considering selling off some of its branches.
Only financially sound banks are eligible for bailout funding, and regulators have typically waved off unsuitable applicants before making a determination. Whether or not Bank of Granite received such a signal, or sincerely wanted to avoid the stigma of the TARP program, is not known.
Despite mounting capitalization problems, North Carolina-based Bank of Granite Corp. decided not to follow through on its attempts to get funding under the Troubled Asset Relief Program, the Charlotte Observer reported.
Scott Anderson, the bank's chief executive, cited the fear of negative publicity as the reason for pulling its application to participate in the $700 billion bailout program.
"It's gone from the Good Housekeeping seal of approval to the scarlet letter," Anderson said. "Everybody who's calling me is saying, 'I wouldn't bank with you if you took some of that bailout money.'"
However, the Observer reported that Bank of Granite has been struggling to maintain adequate capital ratios, recently lost a line of credit with another bank, and is considering selling off some of its branches.
Only financially sound banks are eligible for bailout funding, and regulators have typically waved off unsuitable applicants before making a determination. Whether or not Bank of Granite received such a signal, or sincerely wanted to avoid the stigma of the TARP program, is not known.
published May 26, 2009, 0 Comments
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