Treasury Provides $284.7M To 22 Banks From Bailout

By MARTIN CRUTSINGER

WASHINGTON (AP) — The Treasury Department has provided $284.7 million to 22 banks in the latest payments from the government's $700 billion financial rescue fund.

The government is buying preferred stock in banks as a way to bolster their balance sheets in hopes of getting them to resume more normal lending. With the new payments, the government said Tuesday it has spent $197 billion on this part of bailout.

The largest payment in the new round was $100 million to First Busey Corp. of Urbana, Ill., followed by Park Bancorporation Inc. of Madison, Wis., which received $23.2 million.

The smallest payment in the latest round was $500,000 to Community Bancshares of Kansas Inc. of Goff, Kan. The purchase program for preferred shares of bank stock has provided support to 489 institutions in 47 states and Puerto Rico.

The bailout effort also has supplied billions of dollars under other rescue programs, including one designed for large troubled banks that has provided aid to Citigroup Inc. and Bank of America Corp. Insurance giant American International Group Inc., as well as automakers General Motors Corp. and Chrysler LLC and their auto financing arms, also have received taxpayer support.