10 Banks To Repay $68B Of TARP Funds

By Justin Gardner | Related entries in Banks, Economy, Money

That’s out of the nearly $230B given out over the past 9 months.

In other words, nearly 30% of the money that we would NEVER see again is being paid back. And the government could actually make a profit if they choose to exercise stock options, but there’s word they won’t do that.

Here’s more from Wash Post:

The decision is a milestone for the Obama administration’s financial rescue plan, reflecting new confidence that some large banks have returned to stable profitability. It is also a victory for the banks, which have pressed for permission to show strength and to avoid restrictions including limits on executive pay. But senior officials cautioned that the repayments are not a sign of a broader economic revival.

“These repayments are an encouraging sign of financial repair, but we still have work to do,” Treasury Secretary Timothy F. Geithner said in a statement.

The list of banks was longer than many financial analysts had expected, in part because banks have been able to attract billions of dollars in new capital from private investors following the conclusion of government stress tests.

And those are just the big banks. Much smaller banks have already repaid their TARP funds…

The government already has allowed 22 community banks to repay about $1.8 billion in federal aid, but this marks the first time large banks have been given permission to return money. Treasury officials say they now are comfortable that these banks can weather the recession without the benefit of direct government support. The government continues to support banks through a variety of other, less visible programs, including debt guarantees, cheap loans and a pledge that the largest banks will not be allowed to fail.

No doubt there’s still a hell of a lot of taxpayer money out there, but you can’t say the Obama administration doesn’t have a plan to get this money back. And now we’re seeing that plan work, so some very encouraging signs of progress.

By the way, if you want to see the banks that went through the stress tests and the amount of TARP funds they were given, go here.


This entry was posted on Tuesday, June 9th, 2009 and is filed under Banks, Economy, Money. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

5 Responses to “10 Banks To Repay $68B Of TARP Funds”

  1. ExiledIndependent Says:

    Good news! Want to see the plan for GM and Chrysler next.

  2. Trescml Says:

    Although this is good news, some of the money is coming from banks who didn’t really want the money in the first place and were told they were going to take it. The core issue of toxic assets has not been addressed (other than the taxpayers will pay what it takes to keep the financial system from collapsing). Until that is addressed, along with reform to help prevent it from happening again, I still have worries about how TARP will work out.

  3. Stones Cry Out - If they keep silent… » Things Heard: e71v3 Says:

    [...] think this is misleading and is being used dishonestly. A number of banks were forced against their will to take TARP money. [...]

  4. Justin Gardner - Political Pulse - Taxpayers Make 23% On Goldman TARP Repayment - True/Slant Says:

    [...] is after 10 banks said last month they’d be paying back $68B worth of TARP money. Goldman was one of them. And the American taxpayer turned a tidy profit on the [...]

  5. Donklephant » Blog Archive » Taxpayers Make 23% On Goldman TARP Repayment Says:

    […] this is after 10 banks said last month they’d be paying back $68B worth of TARP money. Goldman was one of them. And the American taxpayer turned a tidy profit on the […]

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