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US banks pay back bail-out cash | US banks pay back bail-out cash |
(20 minutes later) | |
US banks have started to pay back money borrowed through the government's Troubled Asset Relief Program (Tarp). | US banks have started to pay back money borrowed through the government's Troubled Asset Relief Program (Tarp). |
Morgan Stanley, US Bancorp and BB&T have returned $10bn (£6.1bn), $6.6bn and BB&T $3.1bn respectively. | |
More banks are likely to make payments on Wednesday. Goldman Sachs has said it is ready to repay its $10bn loan. | |
Ten banks got government approval to repay the loans last week, but Wednesday is the first day they are allowed to make the repayments. | |
Before being allowed to pay back money, the banks had to be able to show that they were able to raise cash privately, without government intervention. | |
The other banks allowed to pay back the money were JPMorgan Chase, American Express, Capital One, Bank of New York Mellon, State Street and Northern Trust. | The other banks allowed to pay back the money were JPMorgan Chase, American Express, Capital One, Bank of New York Mellon, State Street and Northern Trust. |
"Real stability can return return only if our industry accepts that certain practices were unhealthy and not in the long-term interests of individual institutions and the financial system, as a whole," said Lloyd Blankfein, Goldman's chief executive, in a letter given to congressmen and senators. | "Real stability can return return only if our industry accepts that certain practices were unhealthy and not in the long-term interests of individual institutions and the financial system, as a whole," said Lloyd Blankfein, Goldman's chief executive, in a letter given to congressmen and senators. |
By repaying the funds, the banks will no longer have to pay dividends to the government or limit pay and bonuses. |