J.P. Morgan, Goldman, Morgan Stanley, others repay TARP
Some lenders also plan to buy bank warrants held by Treasury
SAN FRANCISCO (MarketWatch) -- J.P. Morgan Chase & Co., Goldman Sachs Group, Morgan Stanley and several other big U.S. banks said Wednesday that they repaid billions of dollars in government money they got when the industry had to be bailed out in the middle of last year's financial crisis.
Earlier this month, the Treasury Department gave 10 large financial institutions the go-ahead to repay $68 billion in government money, freeing them from limits on executive compensation and dividends. See full story.
However, the industry isn't out of the regulatory thicket completely. President Barack Obama unveiled proposals on Wednesday that could leave the financial-services industry more tightly regulated and less profitable. See related story.
J.P. Morgan Chase /quotes/comstock/13*!jpm/quotes/nls/jpm (JPM 47.21, +1.55, +3.40%) said Wednesday that it repaid the $25 billion it received under the U.S. Treasury's Troubled Asset Relief Program, or TARP. In addition to the principal, the bank said it paid $795.1 million in dividends on the preferred stock held by the Treasury. J.P. Morgan said it also notified the Treasury of its intention to repurchase 10-year warrants.
Goldman Sachs /quotes/comstock/13*!gs/quotes/nls/gs (GS 191.76, +4.53, +2.42%) said it repurchased preferred shares from the government for roughly $10.04 billion, which includes accrued dividends. The firm didn't mention warrants giving Treasury the right to buy Goldman shares in future.
Goldman's buyback includes a one-time preferred dividend of about $425 million, which will be reflected in the bank's second-quarter results. The payment will reduce reported earnings per share by approximately 77 cents, Goldman noted.
Morgan Stanley /quotes/comstock/13*!ms/quotes/nls/ms (MS 32.09, +0.95, +3.05%) said it repaid $10 billion in TARP funds. It did not provide details on dividend payments, but said it will continue to work with the Obama administration and Congress to ensure the strength and stability of the financial system.
U.S. Bancorp /quotes/comstock/13*!usb/quotes/nls/usb (USB 23.36, +0.51, +2.23%) said it redeemed the $6.6 billion of preferred stock issued under TARP. The bank also said it told Treasury it plans to repurchase warrants issued to Treasury along with the preferred securities.
"The redemption allows our company to return to operating from a position of both independent strength and strategic flexibility," U.S. Bancorp Chief Executive Richard Davis said in a statement. "I would also like to take this opportunity to thank the U.S. taxpayers for their support of our company during the height of uncertainty in the financial markets."
BB&T Corp. /quotes/comstock/13*!bbt/quotes/nls/bbt (BBT 28.35, +0.58, +2.09%) said it will pay about $3.1 billion to the Treasury to repurchase its preferred stock, plus a final dividend payment of about $13.9 million, to exit TARP.
BB&T also has told Treasury that it will buy back the outstanding warrants associated with TARP, which allows the Treasury to purchase up to 13.9 million shares of the company's common stock.
"Any adjustment resulting from the repurchase of the outstanding warrant will be accounted for in the second or third quarter of 2009," the bank said in a statement.
BB&T has paid a total of $92.7 million in dividends under TARP.
Other banks that said they paid back TARP money on Wednesday, along with the total amount they paid, including accrued dividends, are as follows: American Express Co.
(AXP 35.37, +0.53, +1.52%) , $3.39 billion; Bank of New York Mellon Corp.
(BK 28.24, +0.50, +1.80%) , $3.04 billion; Capital One Financial Corp.
(COF 38.45, +0.26, +0.68%) , $3.57 billion; and Northern Trust Corp.
(NTRS 59.14, -1.13, -1.87%) , $1.58 billion.
Alistair Barr is a reporter for MarketWatch in San Francisco.
www.marketwatch.com/story/...her-banks-repay-tarp?siteid=yhoof
Zurück
Weiter
