M&T Bank Corp. has joined the ranks of banks with a presence in the Capital Region that are lining up for cash infusions from U.S. Treasury Department’s $250 billion rescue program.
The Buffalo bank holding company announced today preliminary approval of its application for $600 million from the Treasury Department’s Capital Purchase Program, through which the federal government props up banks by buying preferred stock from them.
The M&T Bank parent applied for the funding even though its capital ratios are above regulatory minimums and it has enough capital on hand to meet customers’ credit needs.
“[W]e believe it is important to join the industry in support of this program,” Rene Jones, M&T Bank Corp.’s chief financial officer and executive vice president said in a statement.
Jones added M&T is “examining how additional capital would be deployed effectively and efficiently.”
A bank spokeswoman could not elaborate on how or where the federal funding would be allocated.
The bank rescue fund is part of the $700 billion Troubled Asset Repurchase Program, which Congress approved in October. Other bank holding companies with a presence in the Capital Region that will receive Capital Purchase Program infusions include Charlotte, N.C.-based Bank of America Corp., Cleveland-based KeyCorp and Lockport-based First Niagara Financial Corp. Under the program, Bank of America will receive $25 billion, KeyCorp will receive $2.5 billion and First Niagara will get $186 million.