Three Idaho bank companies are behind on their payments to the U.S. Treasury for money borrowed under the Troubled Asset Relief Program, or TARP, at the height of the financial crisis.
The Idaho Statesman (http://bit.ly/p7OtLh) reports that holding companies for Syringa Bank, Intermountain Community Bank and Idaho Banking Co. owe a combined $3.5 million for past-due TARP payments. And U.S. Treasury observers are now attending the board meetings of Syringa Bank and Idaho Banking Co.
The banks say they are holding on to their cash to preserve their capital.
Some banks took a hit in the recession when borrowers started defaulting on loans and the real estate market collapsed. So far, only one Idaho-based bank – First Bank of Idaho in Ketchum – has failed since the recession began.
Information from: Idaho Statesman, http://www.idahostatesman.com