Webster Approved For $400 Million Fro...

Webster Approved For $400 Million From Treasury's Program

There are 13 comments on the Hartford Courant story from Nov 7, 2008, titled Webster Approved For $400 Million From Treasury's Program. In it, Hartford Courant reports that:

Webster Financial Corp. said Friday that it has received preliminary approval for $400 million of new capital from the U.S. Treasury's assistance program and will use it to increase lending and fuel growth - ...

Join the discussion below, or Read more at Hartford Courant.

Huh

Moodus, CT

#1 Nov 8, 2008
Should be a corruption investigation with Webster's Jim Smith & the City of Waterbury's mayor Jarjura. Sealed Bids?
Mr C

Berlin, CT

#2 Nov 8, 2008
Do they have to pay this money back someday?
How Sweet It Is

Gales Ferry, CT

#3 Nov 8, 2008
And the pigs line up at the trough. Does this mean Webster is shakey or in trouble? Most local banks are not looking for a handout.
DOGMA

Newington, CT

#4 Nov 8, 2008
When did the financial bailout become an infusion of funds for expansion and greater acquisitions? Once more we bear witness to the rewarding of the egregious excesses of the wealthy and powerful. Are there no specific provisions which dictate how this insertion of public capital is to be utilized in private industry? Or, is this simply a generous gift to be borne by future taxpayers (our children and grandchildren)?
If this is permitted, then the bail-out is fully exposed as a clever sham to be celebrated by all executives and board members while attending expensive spas and retreats. American Corporate Corruption ....... it is the new politics.
Norman

United States

#5 Nov 8, 2008
Instead of complaining, if you're not happy about Webster's actions, take your money out of Webster!
Your mama

Meriden, CT

#6 Nov 8, 2008
YES the government gets paid back. Webster pays Uncle Sam 5% for the 1st five years and 9% after that. Webster agreed to limit executive compensation and CAN NOT raise their current common stock dividend beyond what it already is. This is very reasonable of Webster to take part in the TARP program. Not every bank will be approved for TARP. If Webster were on the brink of failing they would have been denied these government funds.
Huh

Vernon Rockville, CT

#7 Nov 8, 2008
Wow, you would think that with all of Webster's fee's and charges they wouldn't need any help....
Dave

Wallingford, CT

#8 Nov 8, 2008
Harold would turn over in his grave. instead of extending credit and helping their customers, all they think of is spending on branches. anyone remember the botched millions of dollars spent on the last few bank takeovers.

you sure found a way again to not think of the same customers Harold did..

What a shame..
Musket

Johnston, IA

#9 Nov 8, 2008
HERE PIGGY PIGGY!

This is inexcusible, and NOT what the intent was for the original bill. Shame on Webster and its board!

As a customer, I am outraged, and am now researching other banks. My money moving won't cause economic damage to the bank, but I refuse to business with a bank that seeks to further it own interests on the back of the taxpayers!

Disgusting.

If they do not need the money, they should not take it.
coast reader

AOL

#10 Nov 8, 2008
Norman wrote:
Instead of complaining, if you're not happy about Webster's actions, take your money out of Webster!
Uh, Norman, I'm not happy, so how do I take MY MONEY(that Webster is getting)out of the US government?
Your mama

Meriden, CT

#11 Nov 8, 2008
Musket wrote:
HERE PIGGY PIGGY!
This is inexcusible, and NOT what the intent was for the original bill. Shame on Webster and its board!
As a customer, I am outraged, and am now researching other banks. My money moving won't cause economic damage to the bank, but I refuse to business with a bank that seeks to further it own interests on the back of the taxpayers!
Disgusting.
If they do not need the money, they should not take it.
Musket your a customer of Webster in PA? They have no branches there! READ the TARP bill and guidelines before commenting. Participating banks do not need board approvals to participate. Further, are you pulling you money out of the NINE largest banks in country whom are required participants? You ALREADY do business with participating banks and likely don't know it. Banks lend to each other everyday! Based on Webster's 10Q filed with the SEC, they will use the money to extended even MORE loans to customers AND perhaps SAVE other banks from failure! 5% interest for five years and then 9% interest after that is not a bargain by any means. All banks can get cheaper short-term money directly from the Treasury without TARP. Make no mistake about it, the U.S. government WILL make money! The downside to participation, from a perspective, is the the U.S. government has senior position over ALL other outstanding shares i.e. common stock and preferred stock. From the tax payer perspective that's a good thing! The feds will make public ALL participating banks but NOT the one's who've applied and been denied. If denied banks were made public; that will cause stock price plunges, a drop in customer confidence, drop in deposits and failure.
M_N_K

Manchester, CT

#12 Nov 9, 2008
Part of the fed plan is to encourage the consolidation of the banking industry. be thankfull that a local bank is benefiting from this rather than being acquired by another. is is not shady business. it is not Websters fault either. it is the Fed, and I am just glad a local bank is taking advantage os this bailout so as to help grow the strngth and franchise of a local company. this will eventually bring jobs to the area. and in the short term it guarantees some of our tax dollars are comeing to CT rather than just going the Charlotte based corporations, and New York based Corporations.
Musket

United States

#13 Nov 23, 2008
Your mama--I just now saw your comments and would like to respond.

I am in CT, not in PA-this site is not accurate when posting.

I hold multiple securities licenses, and used to be in the financial industry, and also previously worked for the FED. I have also read the text of the TARP, and watched the voting live as it was discussed. I am fully aware of what it does and does not do. I stand by my statements.

I also did not say that Webster needed board approval. However, the board is complicit in the move to take funds.

What has been done by Congress is a crime as far as I am concerned, and Webster is no better by bellying up to the trough.

I would rather see that money used to save the mom and pops which are going under in droves. Although I think the bailout in and of itself was wrong. Now that its in place, they should at least use it wisely. To date, I have only seen more of the same wastefulness. Case in point--AIG execs spending thousands on conferences, and then coming back to ask for more funding.

From your posting, I can only surmise you are probably a bank executive or legislator, or somehow related to the industry.

Notice many of the "little banks" played by the rules and have now announced that they do not want any bailout funds. Rockville bank in fact made a public statement that they will not accept funds.

I will not do business with Webster going forward, and will encourage friends & family to do the same.

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