Treasury injects capital into 21 more banks

WASHINGTON (Reuters) - The U.S. Treasury Department said on Monday it had transferred $33.56 billion to 21 banks as part of a capital infusion program intended to help steady the shaky financial system, bringing the total injected into banks since the program began to $148.6 billion.

In return for the capital infusions, the Treasury is receiving preferred equity with warrants for common shares as part of a $700 billion financial rescue plan, under which it has set aside $250 billion for bank capital injections.

U.S. Bancorp received $6.6 billion in the latest round of cash infusions, the largest amount for any of the 21 banks injections announced by the Treasury on Monday. Many of the 21 banks had already said they were going to participate in the program.

(Reporting by Tim Ahmann; Editing by Dan Grebler)