Treasury to Auction Warrants

The U.S. Treasury announced Thursday that they would auction off the warrants they own in JP Morgan, Capital One, and TCF Financial. The government received these warrants in connection with their TARP investments. These banks previous negotiated with the Treasury department to buy back these securities but couldn't agree on a price. They will now be auctioned off in a public modified Dutch auction.

Times: U.S. sees profit from TARP

The New York Times reported yesterday that the U.S. government has made about $4 billion in profit from the eight biggest banks who have paid back their TARP investments.

This is by no means a comprehensive accounting of TARP funds. There is a still a significant amount of money that hasn't been paid back yet.

They printed a nice table showing the profit bank by bank: http://www.nytimes.com/imagepages/2009/08/31/business/31taxpayer_graphic.ready.html

CVB Financial to pay back TARP funds

CVB Financial Corp. (Ticker:CVBF) announced Monday that it has received final regulatory approval to repurchase all the preferred stock sold to the U.S. Department of the Treasury in December of 2008. CVB will pay $130 million to the Treasury to repurchase the preferred stock, plus accrued and unpaid dividends and intends to complete the repurchase as soon as possible. CVB recently had a stock offerring which raised $132 million.

Morgan Stanley to buyback TARP warrants

Morgan Stanley (Ticker: MS) announced this morning that they have agreed to buy back the warrants issued as a part of the TARP. They will pay the government $950 million to repurchase the warrants.

Morgan Stanley repays TARP funds

Morgan Stanley (Ticker: MS) announced this morning that they have paid back the $10 billion they received as a part of the TARP.

JPMorgan Chase Repays TARP funds

JPMorgan Chase (Ticker: JPM) announced this morning that they have paid back in full the $25 billion it accepted as a part of the TARP. In addition they reported that they have paid a total of $795,138,889 in dividends on the preferred stock. The next step is to repurchase the warrants issued to the government in connection with the preferred stock investment.

Fed releases guidelines to repay TARP funds

The Federal Reserve today released a statement with guidelines for the largest 19 banks wanting to redeem TARP funds. In addition to being on generally sound financial footing, these banks must demonstrate the ability to access the long-term debt markets without reliance on the FDIC's Temporary Liquidity Guarantee Program and must successfully demonstate the ability to raise public equity.

The Fed said the initial set of redemption approvals are expected to be announced next week.

In response, J.P. Morgan Chase and American Express immediately announced plans today to raise fresh capital through a public equity offering.