Tuesday, June 2, 2009

The "Government Banks" to give back TARP $$

Goldman Scahs raised $1.9 billion from selling it's stake in ICBC, and JP Morgan raises another $5 billion that "they don't need" and expects to have paid back the TARP by the end of June.

During the week of June 8, the Fed will announce the names of the banks that participated in the Supervisory Capital Assessment Program, who want to "redeem" U. S. Treasury capital.

The criteria to payback?

"seeking to redeem U.S. Treasury capital must demonstrate an ability to access the long-term debt markets without reliance on the Federal Deposit Insurance Corporation's Temporary Liquidity Guarantee Program, and must successfully demonstrate access to public equity markets"

"maintain capital levels that are consistent with supervisory expectations"

Thus the capital raises and asset sales.

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