I have really grown bitter towards the term "Financial Services Company" in the past year. It is the wonderful product of the repeal of the Glass/Steagall Act of 1933. That was the act that separated banking, insurance, and security trading. CitiGroup is one of these products also. So I read in the paper today this from the business spotlight section:

What had been established as Madison Bank at the Oaks Financial Center, 1232 Egypt Road, seven years ago was "rebranded" just one year ago when Madison — and six sister banking, investment brokerage and advisory, and personal and commercial insurance subsidiaries of Wyomissing-based Leesport Financial Corp. — were gathered together as one operating company.

That made me a little jittery until this gem came up:

"2008 was a momentous year for the company," reports VIST marketing material. "With all the pieces assembled for a full-service financial services company, Leesport Financial and its seven subsidiaries undertook a total rebranding and unification. On March 3, 2008, the company publicly unveiled its new name and brand."

Why would I be upset that a financial services company had a momentous year last year? Because they ended the year with bang when they sold $25 million in preferred share to the US Government as part of the TARP program. Not quite the size of Susquehanna's take from TARP ($300 million) but still a good size for a company that announced the year as being "momentous". This is from their TARP press release:

  "We believe that participation in the Capital Purchase Program, which is
targeted to qualifying financial institutions, is in the best interest of our
shareholders," said Robert D. Davis, President and Chief Executive Officer,
VIST Financial. "While we are well-capitalized at the bank and holding company
levels, the $25 million which is a low-cost option for generating capital,
will further strengthen our balance sheet, fund future growth opportunities
within our core banking and fee-based businesses and support our current
operations," he added.

and

Under the Capital Purchase Program, the Department of the Treasury plans
to purchase up to $250 billion of senior preferred shares on a voluntary basis
as part of an overall initiative to encourage U.S. financial institutions to
build capital to increase the flow of financing to U.S. businesses and
consumers and support the U.S. economy.


So we bought $25 million of the company so the shareholders can feel
assured that the business isn't in the toilet (though they were really  OK
capital wise) and so they can build their business to charge the public
more fees.  This investment better net us some money so I can feel good
about the ATM Fees.  That Susquehanna ATM at the Gateway Building
should give out shiatsu massage with the amount of money we gave that
bank.