Six United States re­gional banks re­pay Tarp funds

The Pak Banker - - Front Page -

NEW YORK: Six re­gional banks have re­paid funds that the US Trea­sury supplied dur­ing the fi­nan­cial cri­sis, re­turn­ing $2.7bn to tax­pay­ers.

More than two years have passed since the US govern­ment in­vested $389bn in a fi­nan­cial sys­tem which was frozen by cri­sis . Many of the nation's largest banks and in­sur­ers have since re­paid their bail-out funds, un­der­lin­ing the weak­nesses of those still in its pro­gramme.

The di­verg­ing path of the in­dus­try's haves and have-nots has helped spur a pick-up in merger ac­tiv­ity among re­gional banks. The lat­est crop in­cludes four of the top 25 largest re­main­ing Tarp re­cip­i­ents.

The US Trea­sury said on Wed­nes­day that Hunt­ing­ton Banc­shares, First Hori­zon Na­tional, Win­trust Fi­nan­cial, Susque­hanna Banc­shares and Her­itage Fi­nan­cial each bought back all of the govern­ment's out­stand­ing pre­ferred shares and paid out div­i­dends. A sixth lender, Bank of Ken­tucky Fi­nan­cial, re­pur­chased half of the Trea­sury's pre­ferred shares.

Hunt­ing­ton,

based

in Colum­bus, Ohio, had ranked sev­enth among those len­ders that had yet to re­pay the govern­ment. In­clud­ing div­i­dends, the bank paid more than $1.4bn. First Hori­zon, Susque­hanna and Win­trust were also among the top 25 re­cip­i­ents of sup­port.

In­clud­ing Wed­nes­day's deals, the govern­ment has col­lected $269bn on Tarp re­pay­ments, div­i­dends, in­ter­est and the sale of other se­cu­ri­ties. "And in do­ing so, we have re­turned hun­dreds of bil­lions of dol­lars of un­used Tarp author­ity to Congress." - PB News

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