US banks scramble to repay bail-out cash FT.com By Francesco Guerrera in New York and Krishna Guha in Washington May 18 2009
…The authorities decided to allow a group of banks to return the funds, rather than approving individual applications, to avoid a “rush for the exit” by lenders vying for the bragging rights of being the first to repay Tarp, said people close to the matter.
The timing of the repayment and the number and identity of the banks in the first wave is still under discussion.
However, Goldman Sachs, JPMorgan Chase and American Express, which were found not to need any additional equity in the recent stress tests, are almost certain to be in the first grouping.
The banks and the authorities declined to comment.
Healthier banks also hope that by returning taxpayers’ funds, they would gain an edge on more troubled rivals such as Citigroup and Bank of America, which are expected to remain in the programme for several months.
read article here…FT.com / Companies / Banks – US banks scramble to repay bail-out cash.
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