Treasury: $33.6 billion to 21 banks

The second distribution under the $700 billion bailout brings the total dispersed to publicly-traded banks to $158.56 billion.

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By Catherine Clifford, staff writer

NEW YORK ( -- The Treasury Department said Monday that it has dispersed $33.56 billion to 21 banks in a second round of payments as part of the $700 billion bailout program designed to boost the nation's banking system.

The new distribution brings the total to $158.56 billion so far. The government previously distributed $125 billion to nine banks in the form of stock purchase programs.

In this second round, Minneapolis, Minn.-based U.S. Bancorp (USB, Fortune 500) received the largest amount of $6.6 billion. Atlanta-based SunTrust Banks (STI, Fortune 500) received $3.5 billion, as did Birmingham, Ala.-based Regions Financial Corp (RF, Fortune 500). Capital One Financial Corp. (COF, Fortune 500) based in McLean, Va., received $3.56 billion. The smallest amount of $9 million went to Los Angeles-based Broadway Financial Corp.

The first round included $25 billion injections to Wells Fargo (WFC, Fortune 500), JPMorgan Chase (JPM, Fortune 500), and Citigroup (C, Fortune 500). Bank of America (BAC, Fortune 500) was granted $15 billion, while Goldman Sachs (GS, Fortune 500), Morgan Stanley (MS, Fortune 500) and Merrill Lynch (MER, Fortune 500) were given $10 billion each.

Separately, Treasury said the deadline for some 3,600 private banks to apply for a share of the $700 billion bailout is Dec. 8. Private banks had been unable to apply for funds previously because the program involved stock purchases.

As long as a bank has submitted an application with federal regulators to become a bank holding company or a savings and loan bank by the December deadline, the institution is eligible for money from the bailout program.

Roughly 2,500 so-called S-corporation banks in the U.S. can't offer preferred stock so they were locked out under the original terms but will now be eligible to apply for capital as part of the government's bailout program.

Treasury Secretary Henry Paulson said last week that the government's rescue plan for the banking system would no longer involve purchasing toxic mortgage debt from banks, and would instead focus on providing banks with capital by buying stock directly in the public banks.

And in a Senate hearing last week, key lawmakers pressed bank executives on how they have been using government funding, saying that the banks ought to do more to directly help struggling homeowners. Sen. Christopher Dodd, D-Conn., chairman of the Senate Banking Committee, said that banks are not using the government funds to ease credit for struggling home owners.

The House Financial Services Committee is holding a hearing regarding oversight of the $700 billion plan on Tuesday. Treasury Secretary Henry Paulson, Fed Chairman Ben Bernanke and FDIC Chairman Sheila Bair are among the speakers. To top of page

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