Treasury Approves 10 Banks For TARP Repayment

S. Department of the Treasury says that 10 of the largest U.S. financial institutions participating in the Capital Purchase Program (CPP) have met the requirements for TARP repayment established by the primary federal banking supervisors. Following consultation with the primary banking supervisor of each institution, the Treasury has notified the institutions that they are now eligible to complete the repayment process. If these firms choose to do so, the Treasury will receive $68 billion in repayment proceeds. Combined with repayments received to date from other institutions, the Treasury will have received approximately $70 billion in repayments from CPP participants. "These repayments are an encouraging sign of financial repair, but we still have work to do," said Secretary Tim Geithner in a statement. The Treasury did not specify which companies would be repaying the TARP funds, but [link=http://money.cnn.com/2009/06/09/news/companies/banks_tarp/index.htm?postversion=2009060911][u]CNNMoney.com[/u][/link] reports that Capital One and U.S. Bancorp confirmed they are among the banks involved. [link=http://www.bloomberg.com/apps/news?pid=20601087&sid=asVGy4z9Hoc0][u]Bloomberg[/u][/link] additionally reports that JPMorgan Chase & Co., Goldman Sachs Group Inc., American Express Co. and State Street Corp. will be included. The Wall Street Journal adds Bank of New York Mellon to the list. On a related note, [link=http://www.reuters.com/article/governmentFilingsNews/idUSN0833437820090608 ][u]Reuters[/u][/link] reports that Citigroup will launch its $58 billion stock conversion offer this week. The conversion, which has been delayed since April, would turn preferred shares into common stock, leaving the government with a 34% stake in the company. SOURCES: FinancialStability.gov, Bloomberg, Reuters, Wall Street Journal, CNNMo

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