(Updates with details on JPMorgan, Northern Trust)
DOW JONES NEWSWIRES
JPMorgan Chase & Co. (JPM), Morgan Stanley (MS) and US
Bancorp (USB) are among the 10 large banks that the U.S. Treasury
Department has cleared to repurchase preferred shares the
government received last fall through its capital-purchase
program.
The agency didn't disclose which banks would repay a combined
$68 billion in financial-rescue funds, leaving the companies to do
that individually. So far, eight have.
JPMorgan will be the biggest repurchaser at $25 billion.
"Paying back TARP at this time is the right thing for JPMorgan
Chase, and it's the right thing for our country," said Chairman and
Chief Executive Jamie Dimon. He added the funds would best be used
at this point "for other critical purposes."
Many financial firms have been chomping at the bit to get out
from under the increased federal involvement which came with being
part of the Troubled Asset Relief Program. They included dividend
and compensation restrictions.
"This is an important achievement for BB&T," said BB&T
Corp. (BBT) Chief Executive Kelly S. King. "Repaying the
government's investment will give us greater flexibility to benefit
significantly from future opportunities that will be available as
we emerge from this recession. In addition, we will become even
more focused on the business of serving our clients, rather than
dealing with government distractions."
BB&T and U.S. Bancorp said they will record small
second-quarter charges related to the buybacks, $3.1 billion and
$6.6 billion, respectively.
Morgan Stanley received a $10 billion investment. In a short
statement, the company said repaying the money "reflects both
Morgan Stanley's strong capital position as well as the important
systemic role the TARP program played in helping stabilize the U.S.
banking system since the height of the financial crisis."
Capital One Financial Corp. (COF) said it expects to repurchase
the $3.55 billion investment "in the coming weeks." Bank of New
York Mellon Corp. (BK) has raised $2.9 billion through the recent
sale of stock and debt, proceeds from which will go toward its $3
billion buyback. Northern Trust Corp. (NTRS) got $1.58 billion
through TARP and has recently raised nearly all that amount itself
the past month. State Street Corp. (STT) sold $2.5 billion in stock
and notes, above the $2 billion received through TARP.
-By Kevin Kingsbury, Dow Jones Newswires; 201-938-2136;
kevin.kingsbury@dowjones.com
