Banks buy in to government's stock-purchase plan

Springfield-based Great Southern Bancorp Inc. is among local banks participating in the U.S. Treasury's Capital Purchase Program, which has the government buying bank stock to inject capital into hundreds of institutions.

The program is part of the $700 billion bailout plan approved by Congress in October, and it calls for the Treasury to purchase up to $250 billion in bank shares, according to a Treasury news release. So far, $158.56 billion has been allocated to 30 institutions.

About 3,800 privately held "C-Corps" banks have until Dec. 8 to apply for the program, the release said. Another 2,500 "S-Corps" institutions also will be able to apply, but a deadline has not been set.

Great Southern announced this morning that it has received preliminary approval for the Treasury to purchase up to $60 million in senior perpetual preferred stock.

"While our company is 'well capitalized' by all regulatory benchmarks, this investment would enhance Great Southern's capital position," President and CEO Joe Turner said in a news release. "Additional capital would expand our ability to provide appropriate lending to businesses and consumers and would provide greater flexibility in considering opportunities that will likely become available as the industry evolves."

Birmingham, Ala.-based Regions Financial Corp. said it was approved for the Treasury to invest $3.5 billion. Minneapolis-based U.S. Bancorp, meanwhile, received the largest stock purchase - $6.6 billion - in the program's second round of funding earlier this month.

Kansas City-based UMB Financial Corp., Kansas City-based Commerce Bancshares Inc. and Tupelo, Miss.-based BancorpSouth Inc. said they will not participate in the program.[[In-content Ad]]