Goldman, JPMorgan, Morgan Stanley to Repay TARP MoneyGoldman Sachs, JP Morgan Chase and Morgan Stanley have applied to repay the combined $45 billion the banks received in October from the Troubled Asset Relief Program, sources said on Monday.
The three New York-based banks need approval from the Federal Reserve, their primary supervisor, to give back the money. If the applications are approved, the refunds would be the largest amount returned so far to the $700 billion program. Institutions are eager to repay the money to lose the restrictions on compensation and hiring imposed on them in February.
The refunds will be the first by the biggest banks that took part in TARP. Already 14 of the smaller banks that received capital under the program have repaid their debts.
The 19 largest banks recently underwent stress tests that were made public earlier this month. The results showed that 10 of them need to raise more capital.