M&F Bancorp Inc. (MFBP)

[56Chevy]

More TARP Banks Switch to Lower-cost Aid Program

*September 7, 2010 5:57 PM

Three more banks that got taxpayer money through the Troubled Asset Relief Program have exchanged their Treasury Department funding and joined the growing Community Development Capital Initiative Program (CDCI).

The three, all of which originally got investments through TARP's Capital Purchase Program, are Mission Valley Bancorp of Sun Valley, Calif.; M&F Bancorp of Durham, N.C. and Carver Bancorp of New York.

According to its Sept. 2, 2010 transaction report, the Treasury has now invested more than $143 million in 11 institutions participating in the community development initiative. All are existing TARP recipients that converted from the Capital Purchase Program (CPP).

The Community Development Capital Initiative allows certain banks and thrifts to exchange their funding, which carried a 5 percent annual dividend rate, for 2% CDCI funding. In some cases, they also can receive additional public aid at the lower rate. Credit unions, which were barred from the original TARP program, may also apply.

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http://bailoutsleuth.com/news/2010/09/according-to-the-september-2/