Ten Banks Pay Back TARP Money

Thursday, June 11th, 2009
Author : 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.


Biz2Credit Logo This article was submitted by Katie Kapler, Director of Online Strategy for Biz2Credit. Biz2Credit is a small business marketplace that connects entrepreneurs with financing options and advice to grow their business. Send all questions to katie.kapler@biz2credit.com.

Small Banks Win FDIC Victory

Friday, May 29th, 2009
Author : Biz2Credit Advisor

After an outcry by small community banks, the Federal Deposit Insurance Corp., announced last week that big banks would have to pay a larger share of the FDIC levy.

The FDIC fund, which covers bank deposits against loss, is being drained by the failure of many banks.

The five-member FDIC board voted to collect an additional $5.6 billion from the industry, raising the total annual bill to $17.6 billion, the Washington Post reported.

And in a controversial move, the board also voted to charge the largest banks — those with at least $100 billion in assets — about $500 million more of the assessment than it previously planned, said the Post.

FDIC Chairman Sheila C. Bair said big banks should shoulder more of the burden because of their role in causing the country’s current financial crisis.

Small banks celebrated the decision, saying the majority of federal rescue funds are going to large banks.


Biz2Credit Logo This article was submitted by Katie Kapler, Director of Online Strategy for Biz2Credit. Biz2Credit is a small business marketplace that connects entrepreneurs with financing options and advice to grow their business. Send all questions to katie.kapler@biz2credit.com.

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