Banks declining TARP funds show better returns
CNNMoney.com reports on banks that opted not to partake of federal TARP funds distributed to shore up the industry during the financial collapse. As editor-at-large Paul R. La Monica notes, it looks like it was a good decision for those that declined the government aid:
Consider this: Shares of the 54 banks that didn’t want a bailout are, on average, down just 16% since last September. That’s compared to a 30% drop for the KBW Bank Index and 36% plunge for the S&P Regional Bank Index.
And why did these TARP-shunning banks hold up better than their peers? They didn’t get involved in as much risky subprime lending as other banks. In fact, only three of these 54 banks reported a loss over the past four quarters.
Tulsa-based BOK Financial Corp., parent of Oklahoma’s largest bank, was the largest bank to refuse the TARP money.
Don Mecoy
Business Writer
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