LAFAYETTE, La., Feb. 16 /PRNewswire-FirstCall/ -- Invited to Washington, D.C., last week to speak on behalf of community banks, MidSouth Bank President and CEO Rusty Cloutier got the opportunity to tell the nation what he thinks the Treasury can do to begin addressing the nation's financial problems. While in the nation's capital, the bank president was also asked to appear on Bloomberg Television for a live segment that aired Thursday, Feb. 12. "There are two things you learn in the banking business very early," Cloutier told Bloomberg's Kathleen Hays. "Concentration is a bad thing, and the second thing is the cheapest way to handle a problem is to deal with it very quickly. And it appears the Treasury Department is having a real problem dealing with the concentration of the miserable eight that was in Washington [Feb. 11]." Cloutier noted Treasury's unwillingness to start breaking up the troubled banks, which he believes is the best low-cost solution to the financial crisis that has devastated the country. He said those deteriorating major banks today control 60 to 64 percent of the country's assets. "Continuing to pump money into them is not going to be the answer," he said. "Being able to move forward in breaking off some of these operational units and selling them off into the open market will help cause competition and bring back the banking industry," he added. The community banker went on to stress that investors like Warren Buffet might be very interested in putting private money into the industry to start rebuilding the banking system. "And then let those banks go ahead and do their international business and slowly get them back," he said. Cloutier compared today's situation to what happened in Louisiana and Texas in the early 1980s, when Hibernia Corp. of New Orleans was forced to sell off assets in Texas. After making a strong comeback, the banking group became part of Capital One several years ago. "The money is going to sit on the sidelines until they announce they're going to do something with these [big banks]," Cloutier said. "Nobody is going to put fresh capital into the banking business when your major competitor is going to be continuously bailed out by the United States government with more and more money." Cloutier told Bloomberg that MidSouth Bank sold $20 million worth of its preferred stock to the Treasury in association with the Capital Purchase Program, which was designed for healthy banks. However, the former chairman of the Independent Community Bankers of America also told the business and financial news network that many community banks like his are now considering giving back their TARP money. Additionally, other community banks that were supposed to receive funds are now saying they won't take them. Believing the backbone of the nation's small business is its thousands of community banks, Cloutier told Bloomberg the solution to the crisis is rooted in those banks. "If they don't have the community bankers to be available to start buying some of these assets they're really going to be in trouble," he warned. About MidSouth Bancorp, Inc. MidSouth Bancorp, Inc. is a bank holding company headquartered in Lafayette, La., with total assets of $936.8 million as of Dec. 31, 2008. Through its wholly-owned bank subsidiary, MidSouth Bank, N.A., the Company offers complete banking services to commercial and retail customers in south Louisiana and southeast Texas. It has 34 locations in Louisiana and Texas and more than 170 ATMs. The group is community oriented and focuses primarily on offering commercial and consumer loan and deposit services to individuals, and small and middle market businesses. Established in 1985, MidSouth Bank has 27 offices extending along the Interstate 10 corridor in south Louisiana located in Lafayette (9), Baton Rouge (3), New Iberia (3), Lake Charles (2), Sulphur, Jeanerette, Jennings, Thibodaux, Larose, Opelousas, Breaux Bridge, Cecilia, Morgan City and Houma. Additionally, the Company has seven full-service offices in the southeast region of Texas, including Houston, Beaumont (3), Vidor, College Station and Conroe. It also has a mortgage loan center in Conroe. MidSouth Bancorp's common stock is traded on the NYSE Alternext Exchange under the symbol MSL. DATASOURCE: MidSouth Bancorp, Inc. CONTACT: Rusty Cloutier, MidSouth Bank President and CEO, +1-337-962-9900, or Alex Calicchia, Chief Marketing Officer, +1-337-593-3008, both of MidSouth Bancorp, Inc.

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