Word: repayment
(lookup in dictionary)
(lookup stats)
Dates: all
Sort By: most recent first
(reverse)
...When the stress tests were completed last month, the Treasury Department and regulators gave banks deemed to need capital a month to detail how they would raise it. For the banks that passed the stress test, they were told to report back on how they plan to repay taxpayers. Monday, June 8, was set as the deadline for turning in those plans to regulators. (See 25 people to blame for the financial crisis...
...result is that many more banks than expected have the resources to repay the billions they got from the Troubled Asset Relief Program back in October. Morgan Stanley, for instance, came out of the stress test a month ago in need of $1.8 billion in additional capital. But in the past month the bank was able to raise nearly $7 billion by selling new shares of stock. The result: Morgan says those stock sales and other moves will allow the bank to repay all of its TARP funds by the end of June. And Morgan won't be alone...
...Having taken billions in bank bailout money, they were in no position to irritate the Treasury Department. GM's debt is more widely dispersed, however, which makes it harder to muscle a settlement. To avoid a morass in court, the task force agreed at the 11th hour to fully repay GM's secured lenders, using stock in the reorganized company...
...Already, the effort to repay TARP is boosting the cost of borrowing for some banks. That's because banks have to regularly issue bonds in order to have money to make loans and underwrite securities. This became much harder to do during the credit crunch, so the government began allowing banks to offer bonds that are insured by the Federal Deposit Insurance Corp. (FDIC). With the government's backing, banks were able to raise money. (See 25 people to blame for the financial crisis...
...causing some banks to say that for the time being they are better off with the government funding than without it. PNC Financial's chief executive Jim Rohr recently told Bloomberg that his bank, which got $7.6 billion in TARP funds, is planning on taking its time to repay the government. Doing anything else, he said, "would be punitive to shareholders...