Projo Biz Blog

Three publicly traded banks that accept deposits in Rhode Island say that they have applied for infusions of capital under a new U.S. Treasury program. They include Bank Rhode Island, Webster Bank and Bank of America.

Some others - including Newport Federal Savings Bank and Washington Trust Co. - said they did not apply because they do not need the money; they have enough capital already, they said.

Last Friday was the deadline for publicly traded banking companies to voluntarily seek infusions of capital. The aid - which amounts to investments of taxpayer funds into banks by the U.S. Treasury - is available through the Treasury's capital purchase program.

Under that program, the Treasury is encouraging financial institutions to build capital to increase the flow of financing to U.S. businesses and consumers and to support the U.S. economy. It is part of the government's broader bailout program, known as the Troubled Asset Relief Program (TARP).

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