The Boston Globe Business Team April 6, 2009 11:37 AM
The US Treasury is expected to issue rules today that would permit mutually owned banks – smaller banks that are numerous in Massachusetts – to participate in the government’s $700 bailout fund. Until now, only publicly owned banks that issue stock have been able to take government investments in exchange for capital. The Treasury, at the urging of US Representative Barney Frank, the Newton Democrat who chairs the House Financial Services Committee, is making accommodations so that mutual banks, owned by their customers, can take such investments, according to a person briefed on the plan. It’s unclear how many mutuals need the capital and will take advantage of a new program.
(By Beth Healy, Globe staff)
