Six United States regional banks repay Tarp funds
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.
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