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US Bancorp


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.

"Over the past few weeks, we have been evaluating the U.S. Treasury's capital purchase program and the impact that the company's participation in the program might have on our ability to serve our customers, support our communities and create long-term value for our shareholders," CEO and chairman Richard Davis said in a statement.

"U.S. Bancorp is operating from a position of strength," Davis added. "During these uncertain times, the company has benefited from both a prudent approach to risk management and a diverse mix of business. Our capital position is solid."

The capital injection will "augment" US Bancorp's ability to make loans, "invest" for the future and assist in stimulating the economy, he said.>

The U.S. Treasury has so far allotted about $170 billion of the $250 billion it plans to invest in banks through the $700 billion Troubled Asset Relief Program, or TARP, approved by Congress last month. Some 35 banks have agreed to participate in the program, ranging from large-cap companies such as




Wells Fargo


to small community banks like

Washington Federal



First Niagara




Wall Street Journal

reported Monday that up to 1,800

private and public banks

could apply for the capital in the coming weeks. Banks have until Nov. 14 to take part in the capital plan.

US Bancorp's Tier-1 capital ratio was 8.5% at the end of September. With the addition of the new capital, the bank's Tier-1 capital will be 11.4%.

Shares were rising 1.2% to $30.18 in recent trading.