A Tennessee bank is the first this month to receive bailout assistance, as the government's program to stabilize the financial industry continues to slow to a crawl.
F & M Bancshares Inc. has received $3.5 million in assistance, the Treasury Department announced. The bank provided an equal amount of preferred stock in exchange.
The transaction marks the second time F & M has asked the government for help. In January the bank accepted $4.6 million in aid, for which it gave the government preferred stock and warrants.
The bank is the only financial institution to join the Troubled Asset Relief Program this month. Distributions have slowed down considerably in the last few months, with only six firms joining in October.
Overall, the Treasury Department has dispensed $204.6 billion in assistance to financial institutions. Of that, $70.8 billion has been returned by banks seeking to escape the program's regulatory strictures on executive pay and the distribution of dividends.
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