US Bancorp to Get $6.6B Federal Investment

US Bancorp (USB Quote) on Monday became the latest bank to say it would take part in the Treasury's capital injection plan.

The Minneapolis-based company said it has received "preliminary approval" from the government for the sale of $6.6 billion of preferred stock and related warrants to Treasury. The amount is the tenth highest amount to be earmarked for a single institution thus far, since the initial investments were announced last month.

Under the plan U.S. Bancorp will issue the preferred stock at a rate of 5% a year for five years. After that the rate rises to 9% a year if the shares are not redeemed by the company. Treasury will also receive 10-year warrants that will entitle the government to purchase US Bancorp's common stock with a value equal to 15% of the amount of the preferred stock issuance, the bank said. ...