Moving Forward One Step at a Time

SHARE

Tweet

According to an article yesterday on Yahoo Finance, the United States Treasury Department gave the go ahead for 10 banks to repay $68 billion dollars in bailout money. This money was part of the $700 billion lent to banks and financial organizations from the Troubled Assets Relief Program; otherwise know as TARP created last year.

 

Although they were not named by the treasury department, confirmation has been given by the banks themselves which include:

• JP Morgan Chase & Co.
• American Express Co.
• Goldman Sachs Group Inc.
• U.S. Bancorp
• Capital One Financial Corp.
• Bank of New York Mellon Corp.
• State Street Corp.
• BB&T Corp.
• Morgan Stanley
• Northern Trust Corp.

Out of the ten banks that are allowed to pay back the TARP funds only one was not included in last month’s stress test. Eight out the ten banks passed last month’s stress test, while one failed but had raised enough capital and was approved to be able to pay back its TARP funds.

 

With these banks paying back their share of the TARP funds the main question on everyone’s mind may be, “Does this mean that banks will start lending more in the form of mortgages, credit cards, and auto loans?”. The answer is probably not much more than they are right now, but it’s a step in the right direction of having a healthier banking system.