Banks get cash infusion

| Print |  Email
Archives - December 2008
Monday, December 01, 2008

PORTLAND As of mid-November, three Oregon banks are in line to get a federal infusion of cash.

Portland-based Umpqua Bank will get a $214 million cash infusion after selling that amount in preferred stock to the U.S. Treasury. Pending shareholder approval this month, Capital Pacific Bancorp in Portland will get $4 million. The Commerce Bank of Oregon will receive an undetermined amount from its parent company’s $1.4 billion Treasury investment. Zions Bancorporation owns Commerce.

The $250 billion Capital Purchase Program is meant to bolster healthy banks so they can lend more  and stimulate the economy. The feds are only investing in banks capable of paying it back, which has analysts scrambling to find out which banks didn’t make the cut, experts say.

“Behind the scenes almost every bank in the Northwest is applying for it,” says Ron Farnsworth, chief financial officer at Umpqua. “But they may apply and not get it, and that’s the investor’s concern.”  Umpqua’s stock value went up more than 20% since the announcement.

Concern has been raised about banks hoarding the cash. Participants must pay a 5% dividend on the shares issued to the government for the first five years of the investment, then 9% after that.

“There’s a lot of concern that banks have turned off the spigot,” says Capital Pacific CEO Mark Stevenson. “Even to their existing clients.”

Both Umpqua and Capital Pacific say they intend to lend the money to Oregon businesses immediately. 

JASON SHUFFLER


Have an opinion? E-mail This e-mail address is being protected from spambots. You need JavaScript enabled to view it

 

 

More Articles

Closing the Gap: The two Oregons and the way forward

February 2015
Monday, January 26, 2015
BY JOE CORTRIGHT

"Nostalgia is not an economic strategy."


Read more...

Ski traffic

News
Tuesday, January 20, 2015
0121-skiway-thumbBY LINDA BAKER | OB EDITOR

A place-based multimodal transportation plan for Mt. Hood is long overdue.


Read more...

Leading with the right brain

News
Tuesday, December 09, 2014
120914-manderson-thumbBY LINDA BAKER

On the eve of the Portland Ad Federation's Rosey Awards, Matt Anderson, CEO of Struck, talks about the transition from creative director to CEO, the Portland talent pool and whether data is the new black in the creative services sector.


Read more...

Justice for All

January-Powerbook 2015
Thursday, December 11, 2014
BY JESSICA RIDGWAY

Lawger upends the typical hourly based fee model by letting clients determine the cost.


Read more...

See How They Run

January-Powerbook 2015
Friday, December 12, 2014
BY LINDA BAKER

Studying ground-running birds, a group that ranks among nature's speediest and most agile bipedal runners, to build a faster robot.


Read more...

Editor's Letter: Tortoise and the Hare

February 2015
Monday, January 26, 2015

The day after this issue goes to press, the city of Medford will host its annual business conference. The event features Minoli Ratnatunga, co-author of the Milken Institute’s annual “Best-Performing Cities” report. Preliminary data suggests that Medford is likely to retain its No. 1 ranking among best-performing small cities for having a higher concentration of high-tech firms than the national average. 


Read more...

Taking the lead in boosting Oregonians’ health and strengthening our economy

Contributed Blogs
Thursday, January 08, 2015
0108-injection-thumbBY CAMBIA HEALTH SOLUTIONS & OREGON BUSINESS COUNCIL | OP-ED

Businesses have a significant stake in the health of Oregonians. In fact, we cannot succeed without it. By committing to using our companies as levers for good health, we invest in our people, our business, our quality of life and our economy. 


Read more...
Oregon Business magazinetitle-sponsored-links-02
SPONSORED LINKS