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| Version 1 | Version 2 |
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| Ten US banks to pay back bail-out | Ten US banks to pay back bail-out |
| (40 minutes later) | |
| Ten of the largest US banks will be able to repay $68bn in government bail-out money, the US Treasury says, a sign the financial crisis is easing. | Ten of the largest US banks will be able to repay $68bn in government bail-out money, the US Treasury says, a sign the financial crisis is easing. |
| The Treasury had been reluctant to let banks repay but now appears to believe financial stability is not at risk. | The Treasury had been reluctant to let banks repay but now appears to believe financial stability is not at risk. |
| Banks have been eager to pay back the money to escape potentially onerous government restrictions, such as caps on executive pay. | Banks have been eager to pay back the money to escape potentially onerous government restrictions, such as caps on executive pay. |
| The Treasury did not name the banks that had received approval to repay. | The Treasury did not name the banks that had received approval to repay. |
| But JP Morgan, American Express, Bank of New York Mellon, BB&T Corp, Capital One Financial, Morgan Stanley, State Street and US Bancorp confirmed that they had received permission to pay back the money. | But JP Morgan, American Express, Bank of New York Mellon, BB&T Corp, Capital One Financial, Morgan Stanley, State Street and US Bancorp confirmed that they had received permission to pay back the money. |
| Goldman Sachs and Northern Trust were also reported to be among those given approval to pay back the money from the US government's $700bn Troubled Asset Relief Programme (Tarp) introduced last October. | |
| "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 Treasury said. | "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 Treasury said. |
| "If these firms choose to do so, Treasury will receive $68bn in repayment proceeds." | "If these firms choose to do so, Treasury will receive $68bn in repayment proceeds." |
| The repayments could boost the Treasury's depleted Tarp funds and could in theory be made available to other institutions that got into trouble. | |
| All these banks except Morgan Stanley passed the US government's stress tests in May which assessed whether banks had enough capital to withstand further losses should the economy worsen. | All these banks except Morgan Stanley passed the US government's stress tests in May which assessed whether banks had enough capital to withstand further losses should the economy worsen. |
| However, some observers fear premature repayment could stop the banks lending and thus undermine the chances of an economic recovery. | However, some observers fear premature repayment could stop the banks lending and thus undermine the chances of an economic recovery. |
| "Partly what's that telling you is that banks are spending all their money paying back the government and not doing what that money was intended to do, which was to stimulate the economy and lend that money," said Marc Pado, US market strategist at Cantor Fitzgerald. | "Partly what's that telling you is that banks are spending all their money paying back the government and not doing what that money was intended to do, which was to stimulate the economy and lend that money," said Marc Pado, US market strategist at Cantor Fitzgerald. |