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Tuesday, April 21, 2009

Seven Banks Have Now Paid Back TARP

According to government accounting, seven banks have now paid back their TARP monies. And for many reasons a whole host of banks are now racing to pay back their obligations to the US Treasury.

To date $467,310,000 has been paid back. In addition those seven banks have paid the accrued dividends associated with the TARP program terms.

Treasury Secretary Geithner's underscored the government program success on Tuesday stating that "the vast majority" of banks now have enough capital. Geithner also told a congressional committee that additional banks would be allowed to repay financial bailout funds once bank regulators give the nod.

And continuing the string of better-than-expected financial sector earnings, the following banking and financial firms beat First Call income estimates on Tuesday:

- First Cash Financial Services (FCFS)
- Huntington Bancshares Inc. (HBAN)
- Jefferies Group Inc. (JEF)
- Regions Financial Corp. (RF)
- State Street Corp. (STT)
- US Bancorp (USB)
- Western Union (WU)

More evidence that the stock market rally will continue to be fueled by earnings news that is clearly not as bad as expected - particularly in the financial sector that was decimated last year.


  1. Hello,
    I don't know enough about the nature of this post to comment accordingly (heck I am not sure what a TARP payback is) but I did want to mention that had I not been involved with VINEFIRE, I never would have came across your site, as valauble as it is. This brings to my mind that VINEFIRE has incredible potential to enlighten those of us not yet having explored new territory to be brought to it by reason of importance. I was supposed to find out about this information and was graciously by the spirit of the www, led to you . . . Thank you for being a true valuable 'alpha-seeking' contributor and it is a pleasure to make your acquaintance.
    sharing the light,
    miss erica hidvegi
    A fellow VINEFIRE user and valuable web content contributor

  2. So, are these good earnings reports a one time deal because of mark to market modification or do you think the earnings will hold up for the next several quarters regardless of expectations of increasing loan defaults?

  3. I think that analysis of mark to market is really not have much effect on the accelerating rate of earnings that the banks are now enjoying again... Wells Fargo perhaps put it best...
    Wells Fargo took advantage of the drop in interest rates to issue more than $100 billion of mortgages in q1 2009. Revenue almost doubled to $21 billion, including Wachovia’s contribution, and helped the company overcome $3.3 billion of charges from unpaid loans. The allowance for credit losses totaled $23 billion, about twice the level of loans that have stopped collecting interest, Chief Financial Officer Howard Atkins said. “The allowance covers 12 months of estimated losses for all consumer portfolios and at least 24 months of estimated losses for all commercial and commercial real estate portfolios,” Atkins said.“Our focus is on earnings,” Atkins said in the interview about repaying the government. “If we can keep on earning money, capital will take care of itself.”


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