TARP Payback Approval Expected Soon (GS, JPM, AXP, BK)

The Obama administration could announce as soon as today which of the nation's largest banks will be allowed to repay TARP funds. It is expected that as many as nine of the nineteen banks subjected to the stress test could be deemed adequately capitalized even after returning the funds.

Among those that could be allowed to return TARP funds includes: Goldman Sachs (NYSE: GS), J.P. Morgan Chase (NYSE: JPM), American Express (NYSE: AXP), BB&T Capital (NYSE: BBT), Bank of New York Mellon (NYSE: BK), Capital One (NYSE: COF), US Bancorp (NYSE: USB) and State Street (NYSE: STT). All of these companies passed the government's stress test and some have raised additional capital since then to boost their Tier 1 Common capital ratios.

Morgan Stanley (NYSE: MS) was required to raise additional capital as a result of the stress test, but has raised above and beyond that amount and announced that it would apply to repay TARP.

Banks that will likely continue to have TARP funds includes: Bank of America (NYSE: BAC), Citigroup (NYSE: C), Wells Fargo (NYSE: WFC), Fifth Third (Nasdaq: FITB), GMAC (NYSE: GM), KeyCorp (NYSE: KEY), PNC (NYSE: PNC) and SunTrust Bank (NYSE: STI).

MetLife (NYSE: MET), an insurance company, passed the government's stress test and never took TARP capital.

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