http://www.richmondbizsense.com/2009/11/20/payback-time/ Richmond's Homepage For Business News Fri, 10 Feb 2012 00:01:31 +0000 hourly 1 http://wordpress.org/?v=3.3.1 http://www.richmondbizsense.com/2009/11/20/payback-time/comment-page-1/#comment-10819 banker Fri, 20 Nov 2009 14:22:23 +0000 http://www.richmondbizsense.com/?p=13499#comment-10819 Part of the problem with the stigma is that the Capital Purchase Program, which was brought about to encourage U.S. financial institutions to build capital to increase the flow of financing to U.S. businesses and consumers and to support the U.S. economy, is often lumped under the "TARP" or trouble asset relief program umbrella. This gives the impression as Beale mentioned, that any bank involved in the Capital Purchase Program has a heavy volume of troubled assets or needs help, which is not always the case (and was not the case with Union Bankshares). Also keep in mind that the government encouraged healthy banks to participate in the program to show the country that it was working. After-the-fact, they changed the rules and started meddling with the banks that took the money to help them out. Once a bank figures out the Capital Purchase Plan is not all it's cracked up to be, trying to get out becomes a long, laborious process. Part of the problem with the stigma is that the Capital Purchase Program, which was brought about to encourage U.S. financial institutions to build capital to increase the flow of financing to U.S. businesses and consumers and to support the U.S. economy, is often lumped under the “TARP” or trouble asset relief program umbrella. This gives the impression as Beale mentioned, that any bank involved in the Capital Purchase Program has a heavy volume of troubled assets or needs help, which is not always the case (and was not the case with Union Bankshares). Also keep in mind that the government encouraged healthy banks to participate in the program to show the country that it was working. After-the-fact, they changed the rules and started meddling with the banks that took the money to help them out. Once a bank figures out the Capital Purchase Plan is not all it’s cracked up to be, trying to get out becomes a long, laborious process.

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