Mississippi banks took Fed loans
MISSISSIPPI: Three Mississippi banks took advantage of a Federal Reserve shortterm loan program aimed at stabilizing markets during the financial crisis.
The Fed last week was required to disclose more than 21,000 business transactions in its Term Auction Facility program and other programs.
A Clarion-Ledger review of the data shows that Tupelobased BancorpSouth, the largest Mississippi-based bank with assets totaling $13.6 billion, received eight TAF loans ranging from $50 million to $300 million between December 2008 to August 2009. Jackson-based Trustmark National Bank, with assets totaling $9.4 billion, received a dozen TAF loans ranging from $50 million to $150 million.
Finally, Senatobia-based Sycamore Bank, with assets totaling $185 million, received one TAF loan for $5 million.
Regions Bank, based in Birmingham with assets totaling $133 billion, participated in TAF 23 times from January 2008 to May 2009, borrowing from $1 billion to $8 billion.
The Fed said all TAF loans, which were collaterized, were repaid in full, with interest.
Howard L. McMillan, dean of the Else School of Management at Millsaps College and former president of Deposit Guaranty, said banking customers have no reason to panic. "(The TAF program) was created to meet some shortterm liquidity needs and it had nothing to do with a shortage of capital reserve or anything like that," he said. "There's really no cause for concern."
The TAF program was established in December 2007 shortly after the first signs of the financial crisis surfaced.
The Fed initially took steps to increase liquidity available through its discount window, where banks go to borrow money. -PB News