Ten Banks Pay Back TARP Money
Thursday, June 11th, 2009Author : Biz2Credit Advisor
Like rebellious teenagers, big banks are eager to assert their independence from Washington after receiving billions in federal TARP money.
Ten big banks say they have raised enough money to pay back those government loans. JP Morgan Chase repaid $25 billion, with interest, while Morgan Stanley and Goldman Sachs announced they had each returned $10 billion to the government, said the New York Times.
American Express, Bank of New York Mellon, Capital One Financial, State Street, Northern Trust, BB&T and U.S. Bancorp also raised enough money to repay their loans and exit the government rescue program.
Now that the worst of the economic crisis has passed, banks want to be free of government control and the regulations that come with it.
In order to exit the program, banks needed to prove they had enough capital to withstand a deep recession while continuing to foster lending, sell long-term debt and meet their funding obligations, said the Associated Press.



