Posted on 06/17/2009 2:05:23 PM PDT by Toddsterpatriot
NEW YORK, June 17 Reuters) - Ten of the largest U.S. banks said on Wednesday they repaid more than $66 billion of taxpayer bailout funds, as they race to extract themselves from government restrictions on pay for top executives.
Banks are returning money taken from the $700 billion Troubled Asset Relief Program, which was once intended to spur lending but is now viewed as a sign that recipients are too weak to survive on their own. In most cases, the banks issued preferred shares that carried 5 percent dividends in exchange for the money.
JPMorgan Chase & Co (JPM - News) said it repaid $25 billion to TARP, while Goldman Sachs Group Inc (GS - News) and Morgan Stanley (MS - News) said they repaid $10 billion each.
Among other banks, U.S. Bancorp (USB - News) said it repaid $6.6 billion, Capital One Financial Corp (COF - News) $3.6 billion, American Express Co (AXP - News) $3.4 billion, BB&T Corp (BBT - News) $3.1 billion, Bank of New York Mellon Corp (BK - News) $3 billion, State Street Corp (STT - News) $2 billion and Northern Trust Corp (NTRS - News) $1.57 billion.
(Excerpt) Read more at finance.yahoo.com ...
We always knew some of them would be able to pay them back. Certainly after the strong arm O used to get TARP banks to sign off on the GM “deal” paying off became a much higher priority. Of course some, like AIG, are looking like any payback from them will be a long way out if it ever happens.
MTM and the panic on the downside forced firms to mark down their positions when there was little (or no) trading activity. This caused their earnings (and regulatory capital) to fall. When the panic dissipated and marks became more realistic, earnings (and regulatory capital) popped back up, allowing them to pay back the TARP funds some were forced to take. Some took the funds, just in case.
Now the doomers who predicted the money would never be paid back are sad. LOL!
Story I posted here,http://www.freerepublic.com/focus/f-news/2269463/posts
What are they talking about here?
others countered that any signs of bank profitability rested more on accounting changes
What changes?
I think the reference is to the value of those real estate bundles in free fall.
Real estate, bonds based on real estate, corporate bonds all were marked down in the fall.
You bet.
Banks that were not deemed to need more capital and that want to repay bailout funds must prove they can raise money without relying on guarantees against losses provided by the Federal Deposit Insurance Corporation.
I know.
Yes, of course...privatize the profits, socialize the losses.
Some deal for the taxpayer, eh?
(Why did AIG keep making bad deals on purpose after the initial bailout?)
Which profits? Which losses?
(Why did AIG keep making bad deals on purpose after the initial bailout?)
I hadn't heard that they did. You have a link?
This is bogus. So money from the government is a 'bailout', while money to the government is 'repay'. The fact is that Rush was wrong and GWBush's $700b was no bailout. The right turned on itself in the middle of an election and Obama got elected.
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