Obama Administration Sets Sights On 'Deadbeat' Tarp Banks

Summary


The Obama administration has begun monitoring the high-level board meetings of nearly 20 banks that received emergency taxpayer assistance but repeatedly failed to pay the required dividends, according to Treasury officials and documents. And it may soon install new directors on some of their boards.

The number of banks that failed to make at least one dividend payment to the government rose to 132 in the last quarter. These "deadbeats," as they are sometimes called, are virtually all community lenders and collectively received more than $6 billion in taxpayer assistance.

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Obama Administration Sets Sights On 'Deadbeat' Tarp Banks

In addition to those firms, seven have failed, resulting in the total loss of the government's investment.

The number of banks that missed six or more dividend payments has reached 19, up from seven during ...

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