FOR IMMEDIATE RELEASE
Elise Brooks, (202) 589-2427

Statement on 10 Banks to Return TARP Capital to Federal Government

Washington, D.C.—June 17, 2009— Ten financial services institutions have announced their intention to return $68 billion in TARP funds. This is welcome news. Returning the funds after only eight months is a positive statement about the resiliency and fundamental soundness of the U.S. economy and financial system.

The $68 billion repayment represents a significant portion of the $250 billion TARP capital provided to the financial services industry. This repayment is actually the second significant step in a process of financial institutions returning the funds much sooner than anticipated. Prior repayments from 23 other financial services institutions have totaled $1.8715 billion, making the total repaid at just under 70 billion.

This demonstrates that the industry has recapitalized a lot faster than people thought possible and it represents another step back to economic recovery.  The industry was asked to raise capital and has raised over $50 billion from private investors over the last few weeks. 

The taxpayer's investment was protected. In addition to receiving $70 billion of the initial investment back, the companies paid $4.5 billion in dividends and will repurchase warrants worth billions more. 

The banks who have returned the TARP capital today are: BB&T Corp, JPMorgan Chase, Morgan Stanley, and U.S. Bancorp.

The Financial Services Roundtable represents 100 of the largest integrated financial services companies providing banking, insurance, and investment products and services to the American consumer.  Member companies participate through the Chief Executive Officer and other senior executives nominated by the CEO.

Roundtable member companies provide fuel for America's economic engine, accounting directly for $85.2 trillion in managed assets, $980 billion in revenue, and 2.3 million jobs.

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