Financial firms repay $66 billion in TARP money

Discussion in 'Current Events' started by Chris, Jun 17, 2009.

  1. Chris

    Chris Gold Member

    May 30, 2008
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    JPMorgan Chase & Co. (JPM), Goldman Sachs Group Inc. (GS) and Morgan Stanley (MS) are among nine major financial institutions that Wednesday announced they have bought back the preferred stock they issued to the Treasury Department under the Troubled Asset Relief Program.

    Ten banks were given $68.3 billion last fall and received approval last week to repay the funds. So far, just State Street Corp. (STT) - which ranked 9th in terms of the amount it received at $2 billion - has yet to announce its repayment.

    JPMorgan, U.S. Bancorp (USB), American Express Co. (AXP), Bank of New York Mellon Corp. (BK), BB&T Corp. (BBT) and Northern Trust Corp. (NTRS) also announced plans to buy back the related warrants associated with TARP. Goldman, Morgan Stanley and Capital One Financial Corp. (COF) didn't address the warrants.

    Many of the banks that accepted TARP funds starting last fall have said they want to repay the money as soon as possible in order to avoid strict government regulations, especially those on executive pay. Last week, the government cleared 10 large banks to repurchase the preferred shares they sold to the government as part of the TARP program.

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