TARP Payback Separates Banks Into "The Anointed" and "The Zombies"

As was widely expected, the U.S. Treasury announced today that 10 of the largest U.S. financial institutions participating in the Capital Purchase Program have met the requirements for repayment. Treasury expects to receive up to $68 billion in repayment proceeds from the 10 banks.

Commenting on the news Treasury Secretary Tim Geithner said, "These repayments are an encouraging sign of financial repair, but we still have work to do."

The news of those that repaid and those that still have TARP funds separates the banks into two distinct categories: "The Anointed" and "The Zombies." There is no doubt that some of the Zombies can still payback TARP, but until they do they will have the scarlet letter. Talent will likely start flowing from the zombies into the anointed. It remains to be seen if money starts fleeing the zombies into the anointed.

Below are the 10 banks that were approved to payback the TARP. "The Anointed"

• Goldman Sachs Group, Inc. (NYSE: GS) said it received permission to repurchase its $10 billion in TARP funds.
  
• Morgan Stanley (NYSE: MS) said it received permission to repurchase its $10 billion in TARP funds.
  
• J.P. Morgan Chase & Co. (NYSE: JPM) said it received permission to repurchase its $25 billion in TARP funds.
  
• American Express (NYSE: AXP) said it received permission to repurchase its $3.39 billion in TARP funds.
  
• BB&T Corporation (NYSE: BBT) said it received permission to repurchase its $3.134 billion in TARP funds.
  
• The Bank of New York Mellon Corporation (NYSE: BK) said it received permission to repurchase its $3 billion in TARP funds.
  
• Capital One Financial Corporation (NYSE: COF) said it received permission to repurchase its $3.55 billion in TARP funds.
  
• U.S. Bancorp (NYSE: USB) said it received permission to repurchase its $6.6 billion in TARP funds.
  
• State Street (NYSE: STT) said it received permission to repurchase its $2 billion in TARP funds.
  
• Northern Trust Corporation (Nasdaq: NTRS) said it received permission to repurchase its $1.576 billion in TARP funds.

Of the nation's largest 19 banks, that were subjected to the stress tests, that will not be paying back TARP at this time. "The Zombies":

• 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)
  
• SunTrust Bank (NYSE: STI)

You May Also Be Interested In