Bank of the James Financial Group has decided not to participate in the U.S. Department of Treasury’s capital purchase programme.
The company has received preliminary approval from the treasury in January 2009 for a $7.71 million capital investment.
Robert Chapman III, president of Bank of the James Financial Group, said: We are pleased that we met treasury’s standards and that we received treasury’s preliminary approval to participate in the capital purchase programme (CPP). However, after careful consideration of all relevant factors, management and our board of directors determined that participation in the treasury’s capital purchase programme is not in the best interest of our shareholders.
Based on feedback that we have received from the community, we are confident that we can raise the capital necessary for our continued growth locally rather than through participating in the CPP.
The capital purchase programme (CPP), created by the U.S. Treasury, is a voluntary programme in which selected, healthy financial institutions are encouraged to participate. Approved use of the funds includes providing credit to qualified borrowers, either as companies or individuals, among other things. Such participation is intended to support the economic development of the community and thereby restore the health of the local and national economy.
