Tarp banks rush to repay to avoid regulatory scrutiny

Daily news headlines

NEW YORK - US banks are reportedly rushing to repay their Troubled Asset Relief Program (Tarp) loans to get the US government out of their boardrooms as soon as possible.

Investment bank Goldman Sachs has become the first major bank to move towards paying back its $10 billion bailout, through a private investor share issue to raise $5 billion.

Bank of America and JP Morgan are also in a hurry to rid themselves of Tarp accountability, according to a report in UK newspaper The Guardian. The US government has handed out more than $310 billion through Tarp bailout loans.

The banks are reportedly keen to be free from the restrictions imposed on them by Tarp, including the need to pass US Treasury stress tests and limitations on their remuneration structures.

Bailout recipients with retail responsibilities also face investigation for increasing their fees, interest rates and customer penalties, after Tarp Congressional appointee Elizabeth Warren warned of taxpayers "paying twice" to support a failed Wall Street.

  • LinkedIn  
  • Save this article
  • Print this page  

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact info@risk.net or view our subscription options here: http://subscriptions.risk.net/subscribe

You are currently unable to copy this content. Please contact info@risk.net to find out more.

You need to sign in to use this feature. If you don’t have a Risk.net account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here: