(Updates with details on American Express and Goldman Sachs)
DOW JONES NEWSWIRES
JPMorgan Chase & Co. (JPM), Goldman Sachs Group Inc. (GS)
and Morgan Stanley (MS) are among the 10 large banks 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.
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 that came with being
part of the Troubled Asset Relief Program, which included dividend
and compensation restrictions.
"This is an important achievement for BB&T," said BB&T
Corp. (BBT) Chief Executive Kelly S. King. BB&T will pay $3.13
billion, which includes accrued and unpaid dividends.
"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," King said. "In
addition, we will become even more focused on the business of
serving our clients, rather than dealing with government
distractions."
BB&T, U.S. Bancorp and American Express Co. (AXP) said they
will record small second-quarter charges related to the buybacks.
They received $3.1 billion, $6.6 billion and $3.39 billion,
respectively.
Goldman and Morgan Stanley each received $10 billion in TARP
money. In a short statement, Morgan Stanley 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
