Ten major US banks were approved Tuesday to repay the Treasury a total of $US68 billion ($86.04 billion) for capital injections made to stabilise the financial system.
The Treasury, without naming any specific banks, made the announcement a day after the Federal Reserve said the 10 banks ordered to raise new capital following "stress tests" have developed sufficient programs to shore up their finances.
"Following consultation with the primary banking supervisor of each institution, Treasury has notified the institutions that they are now eligible to complete the repayment process," a Treasury statement said.
"If these firms choose to do so, Treasury will receive $US68 billion ($86.04 billion) in repayment proceeds."
The Treasury statement noted that the repayments "follow a period in which many banks have successfully raised equity capital from private investors" and had issued long-term debt not guaranteed by the government.
Several banks immediately announced their intention to repay the Treasury.
Morgan Stanley said it "is pleased to be repaying its $US10 billion ($12.65 billion) in TARP capital with an attractive return for taxpayers."
"We believe this positive development reflects both Morgan Stanley's strong capital position as well as the important systemic role the TARP program played in helping stabilise the US banking system since the height of the financial crisis," the group said.
Capital One Financial said it would repurchase the $US3.55 billion ($4.49 billion) in preferred shares "in the coming weeks." US Bancorp said it would redeem the $US6.6 billion ($8.35 billion) capital investment.
BB&T Corporation said it would repay its $US3.134 billion ($3.97 billion) to the Treasury.
"This is an important achievement for BB&T," said chief executive Kelly 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."
Combined with repayments from smaller banks, the Treasury will have received some $US70 billion ($88.57 billion) in repayments under the Capital Purchase Program, formerly known as the Troubled Asset Relief Program (TARP).
AFP
