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.