Single Page | 
Multiple Pages
Home > BizTimes Daily > Archives > March 3, 2009
TCF to pay back TARP funds
Published March 3, 2009 - BizTimes Daily
TCF Financial Corp., which drew public scorn recently when it sent some of its employees on a luxury trip, plans to pay back more than $361.2 million in funds it received through the federal Troubled Asset Relief Program (TARP).
The company announced Monday has filed notice with the U.S. Department of the Treasury to permit redemption of all of the 361,172 outstanding shares of its Fixed Rate Cumulative Perpetual Preferred Stock, Series A.
The Wayzata, Minn.-based company, which operates TCF Bank in Minnesota and Wisconsin, was criticized for the lavish Mexico trip after it had received the federal taxpayer support.
"The rules have definitely changed," said TCF chairman and chief executive officer William Cooper. "In November when we agreed to accept the funds under the Capital Purchase Program, it was with the understanding that only healthy banks would be granted the funds. These healthy banks would then employ the funds within their markets to expand lending to creditworthy individuals and businesses. Recent actions by the U.S. Treasury and possible congressional or regulatory restrictions/mandates changed the rules. As a result, public perception views those banks that took the TARP money as having done so out of weakness and a need to survive without distinction among TARP programs or individual bank capital adequacy. We believe participation in TARP has created a competitive disadvantage for TCF and it is in the best interest of our shareholders to redeem these shares."
TCF received the TARP funds on Nov. 14.
"TCF has sufficient capital and access to capital to operate without the TARP money," Cooper said.
