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Tuesday, November 4, 2008

To All My Scofflaw Clients: Enjoy

American Scofflaw

As many as 1,800 publicly held institutions could apply for U.S. government investment in coming weeks, the Wall Street Journal said, citing Treasury and banking regulators.

Depending upon conditions still being crafted by the Treasury thousands more private banks could apply for government capital as well, a Treasury spokeswoman was quoted as telling the paper on Sunday.

Treasury spokeswoman Brookly McLaughlin told Reuters that she couldn't confirm any specific numbers and added that both publicly-traded and privately-held federally-regulated banks and thrifts were eligible for assistance.

The government's $700 billion rescue plan, known as the Troubled Asset Relief Program (TARP), has earmarked about $250 billion to recapitalize the troubled banking sector and spur lending.

So far, nine of the largest banks are due to receive $125 billion and 16 regional banks have accepted more than $33 billion of government cash.

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