Treasury lets 10 banks repay $68 billion - Memphis Business Journal:

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The department said the institutions, which were not have met the requirements for repayment established by federaobanking supervisors. It noted that many banks recentlgy have raised equity capital from private investors and haveissuede long-term debt that is not guaranteed by the “These repayments are an encouraging sign of financial repair, but we still have work to Treasury Secretary Tim Geithner said. More than 600 banks receivecd a total ofnearly $200 billion through the department’s Capital Purchase Program. About $2 billio n of this money was paidback previously.
Under the banks that repay their preferred stock can repurchases the warrants that the TreasuryDepartment holds. Besides the proceeds from the sales ofthe warrants, the department also has receivedx $4.5 billion in dividend payments from program participants. Proceeds from the repaymentz to go theTreasury Department’sx general fund. They can be used to reduc e the national debt and can serve as a cushion in case the departmeng needs to respond to financial emergencies in the thedepartment said. The Wall Street Journal reported the list of financial institutions will include JPMorganChase Co. (NYSE: JPM), American Express Co. AXP), Bank of New York Mellonh Corp.
(NYSE: BK), Capital One Financial Corp. (NYSE: COF) and Goldmabn Sachs Group Inc. (NYSE: GS). Some banksz have been raising fundsw after the stress tests revealexd they needed toboost reserves, including some Dayton-areza banks. The in earlhy May released the results from its stress The regulatory tests were designed to project howthe country’s 19 largest bankxs would perform under a varietyu of economic scenarios by the end of 2010. • -- $33.9 billion • . -- No need The • • -- $5.5 billion • -- $1.1 billiojn • -- $11.
5 billion • •