Ten major financial institutions returned a total of $68 billion in bailout funding they received under the Troubled Asset Relief Program, bringing the total amount returned to the government to $70 billion.
The latest group was led by JPMorgan Chase & Co., which repaid $25 million to the Treasury Department, and Morgan Stanley, which returned $10 billion. The other banks were Goldman Sachs Group Inc., U.S. Bancorp, Capital One Financial Corp., American Express Co., BB&T Corp., Bank of New York Mellon Corp., Northern Trust Corp. and State Street Corp.
In addition to redeeming the shares they sold the government in exchange for financial assistance, the banks paid $2 billion in accrued dividends. The banks also gave the Treasury stock warrants, but the procedures for evaluating their value remain under review.
The redemptions, which were approved last week by the Treasury, mark the most forceful move so far by a banking industry eager to escape what it perceives as an oppressive regulatory environment. Restrictions on executive pay and dividends payments have topped the list of industry complaints.
Despite these criticisms, however, Treasury has no plans to ease up on the $700 billion bailout program. The department has said that it intends to funnel all returned bailout money to assist other, mainly smaller, banks in need of capital.
In one of its most recent distributions, Treasury announced Tuesday that it would lend $15 million to Wisconsin-based River Valley Bank. The bank said the aid would permit it to make up to $150 million in loans to the local community.
The latest group was led by JPMorgan Chase & Co., which repaid $25 million to the Treasury Department, and Morgan Stanley, which returned $10 billion. The other banks were Goldman Sachs Group Inc., U.S. Bancorp, Capital One Financial Corp., American Express Co., BB&T Corp., Bank of New York Mellon Corp., Northern Trust Corp. and State Street Corp.
In addition to redeeming the shares they sold the government in exchange for financial assistance, the banks paid $2 billion in accrued dividends. The banks also gave the Treasury stock warrants, but the procedures for evaluating their value remain under review.
The redemptions, which were approved last week by the Treasury, mark the most forceful move so far by a banking industry eager to escape what it perceives as an oppressive regulatory environment. Restrictions on executive pay and dividends payments have topped the list of industry complaints.
Despite these criticisms, however, Treasury has no plans to ease up on the $700 billion bailout program. The department has said that it intends to funnel all returned bailout money to assist other, mainly smaller, banks in need of capital.
In one of its most recent distributions, Treasury announced Tuesday that it would lend $15 million to Wisconsin-based River Valley Bank. The bank said the aid would permit it to make up to $150 million in loans to the local community.
published June 18, 2009, 0 Comments
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