Ten banks repay $68 billion in bailout funds to exit TARP
Filed under: Economy
Seeking to prove their financial health and escape heightened scrutiny by regulators, all ten of the banks approved last week to repay $68 billion worth of investments from the Treasury Department's bailout fund said they'd done so by the end of the day on Wednesday.JPMorgan Chase (JPM), Goldman Sachs (GS), Morgan Stanley (MS), U.S. Bancorp (USB), BB&T (BBT), American Express (AXP), Capital One Financial (COF), Bank of New York Mellon (BK), State Street (STT) and Northern Trust (NT) said they'd bought back the preferred shares they sold under Treasury's Troubled Asset Relief Program, or TARP.
Eight of the banks cleared the regulators' stress tests of bank balance sheets last month, while Morgan Stanley was determined to need $1.8 billion in additional capital and Northern Trust wasn't subject to the tests.
In addition to buying back the preferred shares they'd sold to the government, most of the companies said they notified Treasury that they intended to buy back warrants issued along with them. The warrants give the government the right to buy common shares of the banks. Analysts and finance professors have estimated it could cost $5 billion to repurchase the warrants at fair market value.
Some of the banks provided details on final payments of dividends on the preferred shares. JPMorgan said it would pay $795 million in dividends (along with $25 billion to buy back its preferred shares) and Goldman Sachs (which paid $10 billion for its preferreds) said it would pay $425 million.
Of course, freedom has a price, and those dividend payments will hurt results this quarter. At Goldman, second quarter earnings per share will suffer by 77 cents, the company said.
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Reader Comments (Page 1 of 2)
6-17-2009 @ 8:46PM
John said...
Of course they want out of tarp - so they can continue to rape and pillage........
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6-18-2009 @ 9:19AM
Larry said...
Yup, You are right.
The lost money has re apeared.
Obama is doing a great Job.
Everytime a Dollar moves 5 times, The Tax returns the Dollar to the Government.
That is at a 20 Percent tax.
Why are they not telling the story of taxation?
6-17-2009 @ 8:54PM
kr said...
WHAT IS BO DOING WITH THE PAYBACK? IS IT BUYING DOWN THE MASSIVE DEFICIT HE DUMPED ON US OR IS HE SPENDING IT SOMEPLACE ELSE?
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6-17-2009 @ 9:11PM
SHUTUPDEMLIARS said...
OBAMA WILL HAVE IT SPENT IN 2 HRS. GIVEING BENIFITS TO THE GAYS THAT WORK FOR THE GOVERMENT.
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6-17-2009 @ 9:15PM
me said...
Makes you wonder why they applied for the tarp funds to begin with if they could pay it back this fast...... Hmmmm.
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6-18-2009 @ 3:23AM
RANDY said...
SOME OF THE BANKS WERE FORCED TO TAKE THE MONEY. THEY DIDN'T NEED IT.
6-18-2009 @ 8:01AM
Randy said...
States are also being forced to take funds that they don't want! O'Bama now owns this mess in a big way. I just hope this country doesn't collapse before his term ends in 2012!
6-18-2009 @ 10:08AM
Monica said...
Yes, many were forced to take it, it an attempt by the Obama administration to gain control of the entire banking industry. Although I do not agree with many of the practices of banks, I am for one glad they are getting out. One less entity controlled by Obama and his government, one chain broken in his attempt to socialize the entire banking industry.
6-17-2009 @ 9:29PM
AL said...
Of course the banks are paying back TARP. They don't want the public to know how much upper management is getting in pay, but oh, those wonderful stock options they receive which is millions more than their huge salaries. America and our CONGRESS is still allowing the thieves to stay in power. DISGUSTING isn't it?
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6-17-2009 @ 9:43PM
cmorse1052 said...
So, when can I expect that check for the interest these banks are paying for borrowing my money?
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6-17-2009 @ 9:49PM
cmorse1052 said...
By the way, could I please see the credit application and credit score of Wells Fargo, BoA and the others who applied to borrow my money? Can I get a copy of the hardship letter they wrote to borrow my money at less than 1%? Can I get a copy of the letter they wrote that lays out the plan for paying me back? These are all standard letters the banks are asking for and hoops they're making the very people they borrowed money from jump through to get any sort of loan.
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6-17-2009 @ 9:50PM
Bob said...
Not that I am for goverment intervention or control, but this kind of makes you think......We got paid back, in full, and in record time, every penny due. Maybe this could set a presedent. The goverment will give you all the money you want, but has say over everything you do until it is paid back. Let's try this with the insurance companies next and the health industry and see if they can become profitable in the next 3 months, maybe even end up with some lower rates in the process.
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6-17-2009 @ 9:55PM
nevin said...
they apparently did not need the money in the first place if they can now pay back the tarp funds!
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6-17-2009 @ 10:14PM
Deb said...
Hmm, 1st quarter they profit, 2nd quarter they're at a loss, wonder what 3rd quarter will be...collapse?
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6-17-2009 @ 11:50PM
steve said...
Chase bank will f--k you over every time.
They want our home and refuse to work with us they say if they take it they can get the money back from FHA.
Think about it the GOV is working with them to put you out on the streets.
If your poor and white your screwed
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6-18-2009 @ 12:41AM
Steven said...
Money! Sin! Lustful crimes! It has been happening in our lives ever since the concept of money first began many thousands of years ago. If you find you need money, then you are a slave to another man. Remove the need for money and you are only then a free man. Of course I am rich white and unafected by all the banks crumbling around me becuase I saw this all coming as soon as George Bush ran for Governor of Texas and won that election. That is when I quietly whispered were screwed then sunk all my money into Gold Platinum Oil and War related stocks. I am worth a friggin fortune now. Whee!
6-18-2009 @ 1:27AM
Beth said...
You're sooo right. :-/ Gov't. bailed them out; now they're seizing the freebie & hitting us little guys hard. If I could magically pay of my debts, I would, but can't. So they will & ARE hitting us hard...too hard to handle w/out, errrrr, a gov't. bailout?
6-18-2009 @ 8:35AM
Gerry said...
Yeah, I hate Chase. First they beg you to sign up to go paperless. And you do everything on line. They send you 1 e-mail when you get have a new bill. You go on line and schedule a payment. But sometimes you can't get on line. They throw out this secuity thing where you have to request a code to get access to your account. Then sometimes you can't get in to make payments because of "account maintenance", "security mainetnance", or "system maintenance". For 3 straight days I couldn't get into my account to scheduale a payment. You can guess when they let me in, the day after it was due. And I on that day got a notice my payment was late so my rates went to the default level. Unless your online all the time, and don't work for a living, they will eventually screw you over. Sometimes they won't even send the "New Bill" e-mail and you have to hope your not so busy, that you remember that it is coming due. They don't even send a notice telling you your payment was posted.
6-18-2009 @ 12:07PM
Silvergirl said...
The Constitution is being trashed in front of our eyes. TARP did tie the hands of banks in ways they didn't like, but a bigger reason for them to get out of such a setup is the overreaching of the federal government into private enterprise. That is NOT governments role. The free enterprise system will no longer exist once the government takes over healthcare. With their hands in the banking system, car industry and healthcare, we will become a socialist country. Next watch your freedoms disappear. Not the USA I grew up in, for sure!
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6-18-2009 @ 2:31AM
gene said...
This all is a madeup deal. Ever so often the goverment has to bring the little man down..He works has 2 cars a house and a little money in the bank, he starts to tell the goverment what he wonts and than things starts to get bad. Just a repeat of CARTER years. OH, how well I remember them.
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