Ten banks have now been approved by the government to being repaying taxpayers for a portion of the more than $700 billion the industry has received from the Troubled Asset Relief Program (TARP) in total. The stated purpose of the TARP was to provide banks with the capital to boost their balance sheets and ease the tightening in lending, boosting the financial industry from its slump.
TARP funds have become a liability, though, at least in terms of public relations. A number of insurance companies were approved for an offshoot of the TARP, but many of these companies ended up refusing the extra capital and government involvement, a thorn in the side of executives who have seen their compensation regulated.
Now companies cannot leave the TARP program fast enough. According to the Wall Street Journal, these are banks that are satisfied with the benefits they received from the government so far and are now eager to repay taxpayers a total of $68 billion:
- American Express
- Bank of New York Mellon
- BB&T Corporation
- Capital One Financial
- Goldman Sachs
- JPMorgan Chase
- Morgan Stanley
- Northern Trust
- State Street Corporation
- US Bancorp
By accpeting the repayments, the government is giving up almost $2 billion in annual interest payments that would have come from these banks. The move, however, may be a sign that the financial industry is rebounding.
Updated September 4, 2016 and originally published June 9, 2009.