Bailout? Some banks say, No thanks

By Paul R. La Monica, CNNMoney
2008-11-3 12:32:05

NEW YORK (CNNMoney.com) -- Not every U.S. financial company is running to the government for help.

Cullen/Frost Bankers, a San Antonio-based bank with $14.1 billion in assets, announced Friday that it has decided to not ask for funding through TARP, the Treasury Department's Troubled Assets Relief Program.

Since the TARP program was launched last month, dozens of banks have received approval for a government investment, and many more are expected to apply before the deadline on Nov. 14.

But it looks as if Cullen/Frost (CFR) really doesn't need the money. Earnings per share are expected to fall only about 3% for the full year, compared to expectations of a 67% drop in profits for the financial-services sector overall, according to data from Thomson Baseline. And Cullen/Frost's stock is actually up 13% this year, an astonishing feat in this market.

"Cullen/Frost is well capitalized now and for the foreseeable future, with sufficient capital to grow our business and take advantage of acquisition opportunities," said Dick Evans, Cullen/Frost's chairman and CEO in a statement.

What I find most interesting about Cullen/Frost's public spurning of TARP is that the bank appears to be trying to out-spin the Treasury Department and banks that have already announced they are receiving TARP money.

	Investment Basic Investment Overview Investment Approache Fundamentals Data Investment Stories www.fxj108.com	Bailout? Some banks say, No thanks By Paul R. La Monica, CNNMoney 2008-11-3 12:32:05 NEW YORK (CNNMoney.com) -- Not every U.S. financial company is running to the government for help. Cullen/Frost Bankers, a San Antonio-based bank with $14.1 billion in assets, announced Friday that it has decided to not ask for funding through TARP, the Treasury Department's Troubled Assets Relief Program. Since the TARP program was launched last month, dozens of banks have received approval for a government investment, and many more are expected to apply before the deadline on Nov. 14. But it looks as if Cullen/Frost (CFR) really doesn't need the money. Earnings per share are expected to fall only about 3% for the full year, compared to expectations of a 67% drop in profits for the financial-services sector overall, according to data from Thomson Baseline. And Cullen/Frost's stock is actually up 13% this year, an astonishing feat in this market. "Cullen/Frost is well capitalized now and for the foreseeable future, with sufficient capital to grow our business and take advantage of acquisition opportunities," said Dick Evans, Cullen/Frost's chairman and CEO in a statement. What I find most interesting about Cullen/Frost's public spurning of TARP is that the bank appears to be trying to out-spin the Treasury Department and banks that have already announced they are receiving TARP money.