10 Banks Allowed to Repay Tarp Money to the Government

June 9, 2009 by Matt Placek

Today,the United States Treasury Department allowed 10 banks to repay money given to them by the federal government’s Troubled Asset Relief Program, or TARP. This development comes after these banks were identified as not needing to raise further capital by government stress tests in the past month.

The banks that got the go ahead to pay back TARP funds are:JP Morgan Chase, American Express, Bank of New York Mellon, State Street, Goldman Sachs, Capitol One, BB&T,Northern Trust, Morgan Stanley and U.S. Bancorp.

Of these Banks all of them passed the government stress tests execept for Morgan Stanley, which was given the green light despite regulators asking the investment bank to raise more capital, and Northern Trust which was not tested.

In all, these banks are reported to pay back around $68 billion in government funds. According to the Treasury Department, the returned funds will then be used to support financial stability and reduce the Treasury’s borrowing.