Banks to Repay Bailout Funds
Posted in Main Blog (All Posts) on June 9th, 2009 4:43 am by HL
Some of the country’s major banks are prepared to pay back money they borrowed under the TARP program, but don’t get too excited. The initial repayment is expected to be a meager $50 billion, which Timothy Geithner wants to inject right back into other troubled banks.
On top of which, the repaying banks will probably continue to draw financing from the Federal Reserve.
Wall Street Journal:
The $50 billion of repayments is the latest sign of improvement in the banking sector. At the same time, many of the banks repaying their TARP funds are expected to continue using other government assistance programs, such as the Federal Reserve’s financing facilities.
[…] While some big banks will be allowed to repay, the Treasury doesn’t believe things have improved enough that the money won’t be needed elsewhere. Treasury Secretary Timothy Geithner has said he plans to reuse returned TARP funds to assist other firms, including smaller banks, including those that have already received an initial TARP infusion.
Related Entries
- June 8, 2009 Outrage—and Business as Usual
- June 8, 2009 Supremes Stall Chrysler Deal
- June 7, 2009 Harry and Louise Need Health Reform
- June 5, 2009 LRC: Obama in the Middle East, GM in Bankruptcy, Now What?
- June 4, 2009 Prop. 8 and the Misery of the Law
