In the News: Take Your TARP and Shove It!
As early as later today, the Treasury will announce that 10 of the formerly troubled banks who received government aid (i.e. TARP) will be allowed to pay back the government and move past all of this fun. Among the institutions included are JP Morgan, Goldman Sachs, American Express and State Street (although JP Morgan is the only one that has definitively been stated, the others are strong presumptions and highly likely candidates). Having raised more than sufficient capital and after jumping through every other Geithner hoop, the treasury will finally allow these banks to buy back the government’s shares in their respective companies.
Morgan Stanley, hoping to not be left out of the “in crowd,” those institutions allowed to pay back the government in this, round 1, has raised nearly $7 billion, well north of the $1.8 billion that they were required to raise as part of the stress test results. Considering, however, that MS has received $10 billion from the government, the jury is still out as to whether they too will join the “1st rounders” and be given their pass to freedom.
