Friday, March 27, 2009

FACTBOX: Banks, trade groups meeting with Obama on Friday

The following is a list of banks and trade groups that have been invited to meet with U.S. President Barack Obama on Friday, according to a source familiar with preparations:
Fannie Mae and Freddie Mac - Seized by regulators when the cost of failing home loans pushed the mortgage-finance companies toward insolvency. Since being nationalized in September, the companies have been turned into tools to aid the housing market.
JPMorgan Chase - One of three national lenders that hold a large share of consumer deposits and received a $25 billion injection of capital from the Treasury Department in October. Last year, regulators helped JPMorgan buy Bear Stearns and Washington Mutual before they collapsed under the weight of bad housing bets.
Citigroup - One of three national lenders that hold a large share of consumer deposits and received a $25 billion injection of capital from the Treasury Department in October. Since that initial investment, Treasury has pumped another $20 billion into the company, promised to shoulder losses on bad investments and otherwise helped prop-up the global lender.
Wells Fargo - One of three national lenders that hold a large share of consumer deposits and received a $25 billion injection of capital from the Treasury Department in October. That same month, the bank with a strong presence on the West Coast bought North Carolina-based Wachovia before that lender collapsed under the weight of mortgage losses.
Bank of America - The bank received a $15 billion injection of capital in October along with many large financial services companies. In early January, the Treasury Department pumped $20 billion more into the lender and agreed to shoulder some losses in order to preserve its buyout of Merrill Lynch.
Bank of New York/Mellon - In October, the Treasury bought a $3 billion stake in the financial services firm under its Troubled Asset Relief Program meant to buttress banks' balance sheets. The government's investment was one of the smallest under that first phase of the aid program.
State Street - The Treasury bought a $2 billion stake in the Boston-based financial services company in October -- its smallest investment under the initial phase of the TARP. The other eight firms that received an initial capital injection absorbed $123 billion in federal money.
Merrill Lynch - The investment bank received a $15 billion boost from the Treasury Department in October in order to preserve its buyout by Bank of America. Deep losses at the company have continued to weigh on Bank of America's balance sheet.
Goldman Sachs - The investment bank took a $10 billion investment from the Treasury Department in October but has since said it wants to return that government money. Now operating as a traditional bank accepting deposits.
Morgan Stanley - The investment bank received a $10 billion investment from the Treasury Department in October and soon thereafter applied to accept consumer deposits to help stabilize its balance sheet.
PNC Financial Services, USBancorp and Northern Trust - The three financial services companies have accepted $7.7 billion, $6.6 billion and $1.6 billion, respectively, under the TARP program. All three have said that they want to return the money soon. PNC and USBancorp are large, regional lenders.
American Bankers Association and Financial Services Roundtable - Two Washington-based trade groups that represent many of the large lenders and finance companies that have received billions of dollars in federal aid.

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