JPMorgan, Goldman Sachs Among Banks to Repay $68B to TARP

Ten large U.S. banks will finish repaying about $68 billion in bailout money Wednesday, the Treasury Department said.

The Treasury said last week the banks could begin repaying money they received last fall under the $700 billion financial system bailout known as the Troubled Asset Relief Program, or TARP.

The program was instituted to help financial institutions cope with the economic crisis and relieve the credit crisis.

TARP became a flashpoint for critics of government intervention last fall, when Congress debated whether to commit $700 billion of taxpayer money to the effort, according to the Associated Press.

The banks repaying TARP are some of the industry's largest, including JPMorgan Chase & Co., American Express Co., Goldman Sachs Group Inc. and Morgan Stanley. BB&T Corp. and U.S. Bancorp. also said they were repaying their TARP money.

In addition to the money they're returning, the banks have paid Treasury more than $2 billion in dividends that were mandated under the TARP program. Taxpayers also will receive billions in exchange for the warrants, once Treasury and the banks can agree on how to price them.

With Wednesday's repayments, Treasury will have recovered more than $70 billion distributed under the program, including about $2 billion from earlier repayments by smaller banks.

The repayments don't necessarily mean Treasury is winding down the program, which injects capital into healthy banks to encourage lending.

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