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Article: Development Banks Seize Treasury Fund Opportunity.(Community Banking)
- Article from:
- American Banker
- Article date:
- December 5, 2008
- Author:
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Byline: Robert Barba
Community development banks caught a break in the Treasury Department's rescue plan when they alone were exempted from issuing warrants to the government in exchange for capital injections, and they intend to take full advantage.
The cost of issuing warrants would have made participation in the Treasury's Capital Purchase Program nearly impossible for banks designed to serve residents and businesses in low-to-moderate-income areas, said Jeannine Jacokes, senior policy adviser to the Community Development Bankers Association.
With the warrant requirement removed, a "significant" number of eligible community development banks ...