Need TARP Capital? Fill Out an Application

Financial institutions that want the Treasury Department to invest in their companies by buying preferred shares need to fill out an application and submit it to their primary regulator, under new government procedures outlined by secretary Henry Paulson on Monday. The government has created a single application form for use by all bank or thrift regulators. The application will be posted on all regulatory websites by close of day Monday. "Treasury has worked with the regulators to establish streamlined evaluations," said Mr. Paulson. "This means that all regulators will use a standardized process to review all applications to ensure consistency." Last week Treasury announced plans to buy $125 billion of non-voting preferred in nine of the nation's largest banks and investment banking firms, including the four largest players in mortgages: Bank of America, Citigroup, JPMorgan Chase and Wells Fargo. It will now spend another $125 billion to buy stakes in potentially hundreds of other smaller financial institutions, leaving less money for its mortgage purchase program. For details about the initiative, go to: http://www.treas.gov/press/releases/hp1222.htm