Three Banks Line Up to Repay TARP (GS, MS, JPM)

Goldman Sachs (NYSE: GS), Morgan Stanley (NYSE: MS), and JP Morgan (NYSE: JPM) have applied to repay the billions in TARP funds they took in October, according to various reports today. Together the three firms received $45 billion in TARP capital; $10 billion for Goldman Sachs, $10 billion for Morgan Stanley, and $25 billion for JP Morgan.

The three need final approval from the Federal Reserve to return the money.

With the passing of the government's stress test on the nation's largest 19 banks, Goldman Sachs stated publicly that they wish to repay TARP. JPMorgan (NYSE: JPM) and Morgan Stanley (NYSE: MS) have also said, more indirectly, that they wish to repay TARP.

Both Goldman Sachs and JP Morgan were determined from the stress test to have an adequate capital buffer to withstand future losses. On the other hand, Morgan Stanley was found to have a capital buffer short-fall of $1.8 billion, but the company bolstered its capital base by $8 billion from selling common shares and debt.

Other banks that have indicated plans to repay TARP since the stress test results were announced include: State Street (NYSE: STT), The Bank of New York Mellon Corporation (NYSE: BK), BB&T Capital (NYSE: BBT), Capital One (NYSE: COF) and US Bancorp (NYSE: USB).

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