Wednesday, March 4, 2009

Banks are signaling

It has been noted widely that JP Morgan slashed their dividend, but what they have not declared is an intention to repay the government its TARP money. 

In the Upper Midwest, TCF Financial and U.S. Bank (which also slashed its dividend to a nickel)  have expressed a desire to repay the government’s money as soon as possible. 

Of course, the feds get to say who can repay, but after the stress test, which all banks are expected to pass, the ability to repay the government may provide material information about a bank’s capital position and future prospects.

ANALYSIS-Some US banks find TARP a bother, give money back

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