recapitalizing

"We're talking to people about recapitalizing the bank, but we're in the middle of a negotiation on this," Mr. Mattingly said.

In recapitalizing the company, he gave $1.7 million in nonvoting stock to the families of Mr. Tollman and Mr. Hundley.

Mr. Takenaka, who took control of banking policy 10 days ago, has been looking for a way around the legal roadblocks that are preventing the government from recapitalizing the banks.

It will also invest in companies that are recapitalizing, that are bankrupt or nearly bankrupt and that are looking for big blocks of capital, like young, private companies that cannot yet go public.