International Bancshares Corp. in Laredo, Texas, has proven that repurchasing common shares is not out of the question for recipients of government capital.

The Treasury Department restricts such repurchases, since its infusions under the Troubled Asset Relief Program were meant to boost capital levels. But the $12.4 billion-asset International won the department's blessing for a buyback with an inventive proposal that observers say other companies might want to copy.

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