Another bank has changed its mind and declined to participate in the Troubled Asset Relief Program.
Washington State-based Kitsap Bank said that, despite approval by the Treasury Department for $21 million in taxpayer capital, it would not accept the money. The decision comes a month after the bank was selected by federal regulators to assume the deposits and operations of failed Washington-based Westsound Bank.
Kitsap Bank said that even after taking on Westsound's operations, it is well-capitalized and does not need federal assistance.
"In the final analysis, we determined that TARP funding was not necessary, and just not a fit for us," said James Carmichael, Kitsap Bank's chief executive, in a statement. "Kitsap Bank is gratified to be recognized for our safety and soundness, and that the US Treasury remains confident in our long-term viability."
A number of banks already participating in TARP are trying to exit the program as quickly as possible. Others that have not yet taken government money are backtracking by declining the funds or withdrawing their pending applications.
Most have cited concerns about public relations and restrictions on executive pay and other cash-related matters as reasons not to participate.
Washington State-based Kitsap Bank said that, despite approval by the Treasury Department for $21 million in taxpayer capital, it would not accept the money. The decision comes a month after the bank was selected by federal regulators to assume the deposits and operations of failed Washington-based Westsound Bank.
Kitsap Bank said that even after taking on Westsound's operations, it is well-capitalized and does not need federal assistance.
"In the final analysis, we determined that TARP funding was not necessary, and just not a fit for us," said James Carmichael, Kitsap Bank's chief executive, in a statement. "Kitsap Bank is gratified to be recognized for our safety and soundness, and that the US Treasury remains confident in our long-term viability."
A number of banks already participating in TARP are trying to exit the program as quickly as possible. Others that have not yet taken government money are backtracking by declining the funds or withdrawing their pending applications.
Most have cited concerns about public relations and restrictions on executive pay and other cash-related matters as reasons not to participate.
published June 11, 2009, 0 Comments
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