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US banks pay back bail-out cash | US banks pay back bail-out cash |
(about 8 hours 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). |
Ten banks have collectively repaid $68bn(£41.5bn) out of the $700bn provided through taxpayer money. | |
Of these, JP Morgan repaid $25bn, Goldman Sachs and Morgan Stanley each paid $10bn, US Bancorp paid $6.6bn and American Express returned $3.4bn. | |
Before being allowed to pay back money, the banks had to be able to show that they were able to raise cash privately. | |
Other banks to repay funds on Wednesday included Capital One Financial, which paid $3.6bn, BB&T Corp paid $3.1bn, Bank of Mellon New York paid back $3bn, State Street returned $2bn while Northern Trust returned $1.57bn. | |
The 10 banks were given the permission last week to return the funds after undergoing government financial stress tests but Wednesday was the first day they could return the money. | |
"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. | By repaying the funds, the banks will no longer have to pay dividends to the government or limit pay and bonuses. |