TarpRepayment posts
FeedPosted Dec 10th 2009 9:20AM by Mark Fightmaster (RSS feed)
Filed under: Citigroup Inc. (C), Bank of America (BAC)
Reports are surfacing that Citigroup (
C) may be gearing up to pay back some for the $45 billion it received from the Troubled Asset Relief Program (TARP). According to CNBC, Citi is going to
raise as much as $20 billion through a stock offering as part of these plans. The report notes that Citi's CEO Vikram Pandit has changes his travel plans so he can announce an equity offering today.
Furthermore, Citi chairman Dick Parsons indicated to CNBC that the bank "is in a position to repay the TARP money, but there is an active discussion we have to have with regulators." An earlier report hinted that Citi and government regulators disagreed over how much C should raise to taxpayers.
Continue reading Is Citi preparing to repay TARP?
Posted Jun 9th 2009 10:10AM by Mark Fightmaster (RSS feed)
Filed under: Economic Data, Federal Reserve, Financial Crisis
The Congressional Oversight Panel announced in a report this morning that it feels
more bank stress tests are needed, especially if unemployment rates continue to rise. The group believes that the stress tests should be repeated periodically as long as banks continue to hold toxic assets.
The panel used a risk-modeling approach that is described as "reasonable and conservative," but added that it is impossible for an outside party to mirror the loss projections that form the core of the stress tests. The group noted that the "more adverse scenario" assumption for the U.S. unemployment rate in the tests has nearly been met in 2009. The yearly average for the unemployment rate stands at 8.5%, which isn't far from the 8.9% assumed in the first round of stress tests. The group recommended that the "Treasury publicly track the status of its stress test macro-economic assumptions (unemployment, GDP, and housing prices) and repeat the stress test if the adverse scenario assumptions have been exceeded."
Continue reading More bank stress tests needed?
Posted Jun 8th 2009 10:10AM by Mark Fightmaster (RSS feed)
Filed under: JPMorgan Chase (JPM), American Express (AXP), BB and T (BBT), Goldman Sachs Group (GS), Morgan Stanley (MS), U.S. Bancorp (USB), Financial Crisis
This morning, the U.S. Federal Reserve is expected announce that some banks will be allowed to
repay the money lent to them under the Troubled Asset Relief Program (TARP). Some of the banks expected to receive approval are
Goldman Sachs (NYSE:
GS),
JPMorgan Chase (NYSE:
JPM),
American Express (NYSE:
AXP),
Morgan Stanley (NYSE:
MS),
State Street (NYSE:
STT) and
U.S. Bancorp (NYSE:
USB). All of these banks have expressed interest in repaying the government.
What is interesting is that there will be yet another Czar joining the White House, a "Repayment Czar," (what is the deal with the media's fascination with Russian royalty?) or as the administration will call the position, the "
Special Master for Compensation."
Continue reading Fed to okay TARP repayment for some banks, appoint a Pay Czar
Posted May 11th 2009 8:30AM by Mark Fightmaster (RSS feed)
Filed under: BB and T (BBT)
Earlier this morning,
BB&T (NYSE:
BBT) announced that it will
cut the size of its dividend as part of its plan to repay all stock and warrants that were invested in the company through TARP. BBT said that a 15-cent dividend will be paid on common stock in the third quarter -- 68% lower than the company's current 47-cent dividend.
BBT
declare: "In addition to our current earnings, while superior to our peers, are not likely to justify our 47-cent dividend in the near term." The company said that the board decided to make the dividend cut thanks to "the risk and uncertainty associated with being a TARP participant." This reduced dividend will be paid on August 3 to shareholders of record as of July 10.
Continue reading BB&T reveals plans to repay TARP funds
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