Oregon Public Broadcasting

The day after announcing it intended to raise more than $200 million to pay back TARP money, Umpqua Bank has raised the cash. Kristian Foden-Vencil reports.

Back in 2008, Oregon-based Umpqua was asked to take Troubled Asset Relief Program money as part of the federal effort to avert the credit crunch.

Bank president, Ray Davis, says they didn't need the cash, but were told it was the American thing to do. Now he says, rather than an asset, it's more like a black cloud hanging over Umpqua.

Ray Davis: "Yeah, I think there is a stigma to having this money which we'll be glad when it's gone. And it's really truly unfortunate, because I don't think that was the intent of the program when it started. But like I said, Congress did a poor job of differentiating the strong banks from the weak."

Davis says Umpqua received $200 million, but lent out about eight times that amount over the last year.

The bank is now awaiting the treasury's approval to pay the money back.