Two more SC bank companies join bailout

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The list of South Carolina financial institutions taking part in the US Treasury Department’s Capital Purchase Program continues to grow.

According to recent information released by the US Treasury Department, two more SC companies have been added to the number of Palmetto State companies taking part in program:

Regional Bankshares Inc. of Hartsville received approval for $1.5 million and BankGreenville Financial Corp. of Greenville was okayed for $1 million, according to the US Treasury Department.

For those of you keeping score at home, that brings the number of Palmetto State institutions involved in the bailout to 11:

  • The South Financial Group, which received $347 million from the government;
  • First Financial Holdings Inc., $65 million;
  • SCBT Financial Group, $64.8 million;
  • Security Federal Corp., $18 million;
  • Tidelands Bancshares Inc., $14.45 million;
  • First Community Corp., $11.35 million;
  • Greer Bancshares Inc. , $9.99 million;
  • GrandSouth Bancorporation, $9 million;
  • Congaree Bancshares Inc., $3.3 million.
  • Total federal dollars sent to SC financial institutions as part of the bailout program now sits at more than $635 million.

    Treasury created the Capital Purchase Program, a part of the Troubled Asset Relief Program, to help to stabilize and strengthen the U.S. financial system.

    Treasury allocated $250 billion under TARP’s Capital Purchase Program to invest in U.S. financial institutions.

    One thought on “Two more SC bank companies join bailout

    1. One should take caution when interpreting who took bailout funds. The gvt decided to publish the names of who got funds, but NOT who applied (presumably so banks that failed to qualify wouldn’t collapse). Well, this meant that no one knew who DIDN’T apply (i.e. didn’t need to apply).

      South Financial was in this group. They had seen potential trouble on the horizon more than a year ago and started raising capital. Their stock took a hit as folks wondered why they were trying to raise capital…”were they in trouble?” Fast forward….because of their foresightedness…they didn’t need bailout funds…..but big investors were calling asking why they hadn’t seen them on the list of who got money and wondering if they were in trouble because they hadn’t gotten any money or….if they had applied and failed to qualify.

      So they bit the bullet and applied for funds they didn’t need to calm investors….while some other investors see them having taken the money as a sign of weakness. Classic “rock and a hard place” situation.

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