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Lender Is 6th To Return Money

A New Jersey bank has become the sixth lender to repay emergency assistance it received from the federal government.

The Treasury Department said on Friday that Sun Bancorp Inc of Vineland, New Jersey, repaid US$89.3 million it originally got on January 9.

The decision by the bank followed actions by five others earlier this month. The government has invested almost US$200 billion in hundreds of banks as part of the US$700 billion financial rescue program that US Congress passed on October 3.

Some of the banks returning the money have said they are doing so because they do not need the support and want to avoid congressional restrictions in such areas as executive compensation.

The amount of support payments returned so far totals US$442.3 million. The two largest individual paybacks were made by Signature Bank of New York which returned US$120 million and Old National Bancorp of Evansville, Indiana, which returned US$100 million.

Both of those repayments were made on March 31.

The money had been provided to the banks in the form of purchases of bank stock by the government.


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