U.S. banks are kept guessing on TARP repayment | Reuters
… Goldman Sachs Group Inc, JP Morgan Chase & Co and Morgan Stanley have applied to repay TARP funds, according to people familiar with the matter, who declined to be named because the repayment talks are private.
JPMorgan Chief Executive Jamie Dimon on Tuesday said “we can and should be able to repay TARP,” adding: “We believe the government will allow a few well-capitalized banks to repay TARP in the next couple of weeks.
Earlier this month, regulators told nine of the 19 big stress-tested banks that they did not need more capital.
Eight of the nine received TARP money, and all want to repay it soon: Goldman, JPMorgan, American Express Co, Bank of New York Mellon Corp, BB&T Corp, Capital One Financial Corp, State Street Corp and U.S. Bancorp.
Two others found to have fairly modest capital shortfalls, Morgan Stanley and PNC Financial Services Group Inc, quickly took steps to raise the sums needed.
Murali Gopal, a Keefe, Bruyette & Woods Inc analyst who covers custodial banks Bank of New York, State Street and Northern Trust Corp, said regulators might distinguish among banks by how far they exceed minimum capital levels.
“If capital is still not very strong, the government may be hesitant to let that bank repay TARP,” he said. “Northern Trust and Bank of New York are in good positions to repay TARP, but State Street’s capital ratio is still not where you want it to be. Tangible common equity may not be ‘comfortably strong.’”
read full article…U.S. banks are kept guessing on TARP repayment | Reuters.
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