Signature Bank has returned the $120m it received from the US Department of Treasury in December 2008 from its participation in the capital purchase programme.
The bank said that the revised, expanded legislation included in the American Recovery and Reinvestment Act of 2009, passed in February 2009, adversely affected its business model and it became apparent that the bank should return these funds to the Treasury.
Scott Shay, Signature Bank’s chairman of the board, said: We are pleased that as one of the most well-capitalised institutions in the country, Signature Bank is among the first to repurchase the preferred shares it issued as part of the US Department of Treasury’s capital purchase programme (CPP) and the funds can now be recycled to those institutions that need the funds.
With our tangible common equity in excess of 8% following the return of the funds to the Treasury, Signature Bank remains one of the strongest capitalised institutions in the nation.
The capital purchase programme is a voluntary programme designed to assist financial institutions in increasing the flow of financing to US businesses and consumers as a way of stimulating the US economy. The CPP is available to bank holding companies, financial holding companies, insured depository institutions and savings and loan holding companies that engage solely or predominately in activities that are permissible for financial holding companies under relevant law.
