Two more Minnesota banks will receive U.S. government money under the bank rescue program.
Private Bancorporation Inc., the parent company of Minneapolis-based Private Bank Minnesota, was approved for $4.96 million in aid under the U.S. Treasury's Troubled Asset Relief Program, or TARP. And Market Bancorporation Inc., parent of New Market Bank, was approved for $2.06 million.
In all, seven Minnesota-based bank holding companies have been approved since last November for TARP assistance, which was designed to enhance banks' ability to make new loans by bolstering their capital levels.
Under the program, the Treasury has bought more than $200 billion in preferred stock and warrants in banks across the country. The largest recipients in Minnesota are U.S. Bancorp at $6.6 billion and TCF Financial at $361 million. However, Bill Cooper, TCF's chief executive, has balked at the changing rules of TARP and has asked for regulatory permission to return the money.
David Waldo, chief executive of Private Bank Minnesota, which has about $158 million in assets, said it turned to the government after unsuccessfully trying to raise additional capital from private shareholders since late 2007. "There's a little bit of private capital out there," he said, "but it's very, very expensive."
Chris Serres • 612-673-4308