Multiple Mississippi banks took bailout money, says Fed
Transparency has been the watchword with the Fed since TARP and the bank bailout, and according to the Associated press, the national bank most recently released a record detailing which banks took money, and just how much. In areas like Mississippi, where big money is more visible, banks took bailout money to the tune of numerous millions, according to the Mississippi newspaper The Dispatch. Source of article - Multiple Mississippi banks took bailout money, says Fed by MoneyBlogNewz.
More short term loans with Fed after Lehman collapse
The Federal Reserve began to give out many short term loans to banks at a great price after Lehman Brothers disintegrated in September 2008. The financial system began seeing trillions of dollars pumped into it. Over 21,000 transactions throughout the nation were used to do that. Whether or not taxpayers realized it, they ended up paying banks, financial corporations and foreign central banks. While credit did not dry up entirely, the Federal Reserve's short term loans did not create a vigorous credit market via stimulus dollars.
Handouts for the Mississippi banks
There were transparency reports from the Federal Reserve, reports the AP. Many Mississippi banks were named in them. About $13.6 billion in assets is what the largest bank within the state, BancorpSouth, has. Still, eight short term loans, or TAF (Term Auction Facility) loans, were given between $50 million and $300 million to the bank. Trustmark National Bank ($9.4 billion in assets) of Jackson, Miss., received short term loans by the dozen, ranging from $50 million to $150 million. Then there’s the Senatobia, Miss., Sycamore Bank. The Federal Reserve gave it one $5 million short term loan.
Don’t be concerned as a Mississippi banker
Howard McMillian is the dean in Jackson Miss., of the Else School of Management at Millsaps College. He says that don’t take your money from the bank out of concern. The Federal Reserve assures that all short term loans of course to Mississippi banks were backed by collateral and paid in full plus interest.
"(The TAF program) was created to meet some short-term liquidity needs, and it had nothing to do with a shortage of capital reserve or anything like that," said McMillan to the AP. "There's really no cause for concern."