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Treasury winds down bank bailouts with $29M outlay

WASHINGTON — The Treasury Department said today it pumped $29.3 million into 10 banks, which will be the last to receive investments as part of the taxpayer-funded program to shore up the financial system.

The aid comes from a $700 billion financial bailout program created last year during the height of the financial crisis.

The banks receiving the latest outlay are: Atlantic Bancshares in South Carolina; Union Financial in New Mexico; Mainline Bancorp in Pennsylvania; FBHC Holding in Colorado; Western Illinois Bancshares in Illinois; DeSoto County Bank in Mississippi; Lafayette Bancorp in Mississippi; Private Bancorporation in Minnesota; CBB Bancorp in Georgia; and Illinois State Bancorp in Illinois.

The investments in the 10 banks are the last under Treasury's so-called Capital Purchase Program, Treasury officials said.

Although the government anticipated winding down support for banks, Treasury Secretary Geithner recently extended the publicly derided bailout program, saying it will now focus on helping homeowners avoid foreclosures and small businesses get loans.

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