March 5, 2009

Johnson Bank declines $100 million of T.A.R.P funds

"You can’t place a value on values."
--CEO Richard Hansen

Johnson Bank, part of Johnson Financial Group, the $5.7 billion financial services holding company, has decided to decline participation in the U.S. Treasury’s T.A.R.P Program after being notified that they were accepted to receive as much as $100 million last week.

“While in the short-term those dollars are attractive to a growing company like ours, in the long-term they would compromise the things we hold most dear- including the unique culture of our company,” said Richard Hansen, President and CEO of Johnson Financial Group. “You can’t place a value on values.”

A growing number of healthy banks are rejecting funds from the Treasury Department's $700 billion T.A.R.P. program citing concerns over their ability to run their business as well as the government’s restrictions on institutions that participate. The banks that qualified for aid have rejected the Treasury's funds; say government officials, bank executives and the Government Accountability Office, who cite the prospect of new strings as a factor.

“We believe accepting funds would stand in the way of our mission, vision and values - the very things that have allowed our company to grow the last few decades,” said Hansen in a statement from the bank today. “Plus, we’re able to sustain growth without the funds.”

The privately owned financial services company is owned by members of the Samuel C. Johnson Family. Helen Johnson Leipold serves as chairman of Johnson Financial Group.

“One of the benefits of being a fifth-generation, family-owned company are the values that have guided and kept us strong through good times and bad. It’s what our clients, associates have come to expect and simply can’t be measured in dollars and cents.” Hansen said.

Johnson Financial Group, which was recently recognized as #25 on FORTUNE magazine’s 100 Best Places to Work in the country, and Hansen added they will continue to do business “as we always have, by doing right by our associates, so they in turn are better able to serve our clients and will continue to enjoy the freedom to contribute to a variety of community events and programs without government oversight.”

5 comments:

  1. It is very assuring that we have a strong, healthy financial banking institution in our own front yard. Large home loans to many people who were not even able to pay the interest on their home loans have almost destroyed this nation's banking system. Hats off to Godly responsibility and honorable management of funds to Johnson Bank. Have you got any advice for those failing banks besides WAKE UP, You Clowns?

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  2. It is very assuring that we have a strong, healthy financial banking institution in our own front yard. Large home loans to many people who were not even able to pay the interest on their home loans have almost destroyed this nations banking system. Hats off to Godly responsibility and honorable management of funds to Johnson Bank. Have you got any advice for those failing banks besides WAKE UP, You Clowns?

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  3. I'm putting my money there.

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  4. My God! Way to go!

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  5. I can see Johnson's point - why be subjected to the public nanny (government Officials and their media) comments that have been directed to Associated Bank and others rightly or wrongly. If taxpayer money is loaned to the banks and will be paid in full with interest why should the banks be subjected to political attack?

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