The Treasury Department announced today that it has injected $29.3 Million into 10 banks on Tuesday, which will be the last institutions to receive investments from the taxpayer funded program established last year to fortify the financial system.

At the height of the financial crisis during the fall of 2008, Congress adopted a $700 bailout program to provide capital to the nation’s financial institutions, in an effort to prevent a massive and widespread collapse. Although the program had many critics, its has proven to be useful and successful.

During this year, all of the major national banks have paid back those investments, with interest, to the taxpayers. The firms have paid back early, and the government has earned large profits on these investments. The program is now winding down its new investments, and those announced this week will likely be the last outlays of the program.

The investments in the 10 banks fall under the Capital Purchase Program established by the Treasury, and by law, the Treasury must report the transactions within two business days. Now that the banks have stabilized, and continue to display adequate capital thresholds, Treasury Secretary Geithner has stated he will now focus on helping homeowners avoid foreclosures and help small businesses get loans.

Although the order of these events may anger some, it is the proper order to ensure a functioning system. Had the banks collapsed, there would have been a deeper panic than we already observed – by shoring this up, the Treasury can now start working down the chain.  Small business lending is critical to the economy, and as 2010 strategies are crafted at the banks, this seems to be a hot issue as we look towards an economic rebound and expansion. In addition, reversing the tide of foreclosures will serve to increase consumer confidence and act as a necessary seed to a recovery.

The banks receiving the latest outlay are: Atlantic Bancshares Inc. in South Carolina; Union Financial Corp. in New Mexico; Mainline Bancorp Inc., in Pennsylvania; FBHC Holding Co. in Colorado; Western Illinois Bancshares Inc. in Illinois; DeSoto County Bank in Mississippi; Lafayette Bancorp. Inc. in Mississippi; Private Bancorporation Inc. in Minnesota; CBB Bancorp in Georgia; and Illinois State Bancorp Inc. in Illinois. These smaller community banks will improve their capital positions, and prevent further devastation for the FDIC.

As the year draws to a close, the bonuses earned on Wall Street receive significant attention. In past years, these funds trickled down and provided booms for high end real estate in New York, Ferrari dealerships in Greenwich, and in virtually every jewelry store on 47th Street.

As bonus information trickles out, it seems unlikely any of that will occur – at least, not this year. Earlier this month, banks began disclosing what senior managers were being compensated, drawing ire over the dollar value. However, many of these bonuses are not being paid in cash – instead, they are being paid in stock, options, or a mix with a claw back stipulation.

Today, Wells Fargo (NYSE: WFC) took their turn announcing bonuses, and similar to its predecessors, the executives have been denied cash bonuses. The top four executives will receive performance based stock awards, currently worth a combined $25 million, designed to keep them away from rival banks waiting to poach them.

The stock (called retention shares) would be forfeited if CEO John Stumpf, or the three other executives leave the San Francisco based firm for a competitor. Although the populist movement decry they are overpaid, and question where they will go, it is important to remember that hedge funds continue to exist, just as foreign firms do. If these employees are not compensated, they would leave for another opportunity, taking their spending and tax dollars with them. Steve Sanger, chair of the Human Resources Committee for Wells Fargo’s board, said in a statement that keeping the four executives at the bank in the wake of its acquisition of Wachovia Corp. is “absolutely essential for the continued long-term success of Wells Fargo.”

The shares issued have a three year vesting period, provided that the firm continues to meet predetermined performance goals. The bonus program is very similar to the Goldman Sachs (NYSE: GS) plan announced earlier this month. Wells Fargo will also issue stock bonuses with a five year vesting period to the 30 highest ranking executives of the firm.

Clark Troy, an analyst with financial consulting firm Aite Group, said the vesting periods could insulate the banks from further public outcry over industry compensation, should the banks’ capital strength deteriorate in 2010. On the other hand, should the banks improve profitability and 2008 becomes an afterthought, the stock prices will surely rise, making these bonuses worth significantly more than the declared value.