10 US banks allowed to repay $68 billion TARP funds

10 June 2009

As an indication of waning financial crisis, the US government has approved a list of 10 of the largest banks to repay $68 billion of the bail-out money given to themunder the Troubled Asset Relief Programme (TARP).

"Following consultation with the primary banking supervisor of each institution, Treasury has notified the institutions that they are now eligible to complete the repayment process," the US Treasury said in a statement yesterday.'' "If these firms choose to do so, Treasury will receive $68 billion in repayment proceeds."

President Barack Obama said, ''This is not a sign that our troubles are over. Far from it.

Timothy Geithner, treasury secretary said, "These repayments are an encouraging sign of financial repair, but we still have work to do.''

The banks are keen to repay the money as it would ease the government restrictions on lending practices as well as pay caps.

So far, the Treasury was unwilling to accept any large paybacks from the banks due to perceived risks. The administration had spent about $700 billion since last October to buy toxic assets from troubled banking institutions following the financial turmoil.