Louisiana Bank Gives Back Bailout Money
Iberiabank Corp. of Lafayette, La., said late last week that it is giving back its $90 million worth of government bailout money because of the conditions being placed on banks that take bailout money, becoming the first bank to give back the money.
"When we decided to accept funds under this program, we believe we were the type of healthy bank that could employ the funds in the manner consistent with the goals initially set out by Congress and the Treasury in supporting the expansion of credit to the markets we serve," Daryl G. Byrd, bank president and chief executive, said in a statement. "We believe recent actions, interpretations, and commentary regarding various aspects of the program places our company at an unacceptable competitive disadvantage.
"Our board of directors has determined that continued participation in this program is no longer in the best interest of our company and its shareholders," the bank said.
Such conditions include restrictions on executive compensation.
March 2, 2009; 12:45 PM ET
Categories: The Ticker | Tags: bailout, banks
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