3rd UPDATE: JPMorgan, Morgan Stanley Among TARP Repayers

(Updates with details on American Express and Goldman Sachs)

   DOW JONES NEWSWIRES 
 

JPMorgan Chase & Co. (JPM), Goldman Sachs Group Inc. (GS) and Morgan Stanley (MS) are among the 10 large banks the U.S. Treasury Department has cleared to repurchase preferred shares the government received last fall through its capital-purchase program.

The agency didn't disclose which banks would repay a combined $68 billion in financial-rescue funds, leaving the companies to do that individually.

JPMorgan will be the biggest repurchaser at $25 billion.

"Paying back TARP at this time is the right thing for JPMorgan Chase, and it's the right thing for our country," said Chairman and Chief Executive Jamie Dimon. He added the funds would best be used at this point "for other critical purposes."

Many financial firms have been chomping at the bit to get out from under the increased federal involvement that came with being part of the Troubled Asset Relief Program, which included dividend and compensation restrictions.

"This is an important achievement for BB&T," said BB&T Corp. (BBT) Chief Executive Kelly S. King. BB&T will pay $3.13 billion, which includes accrued and unpaid dividends.

"Repaying the government's investment will give us greater flexibility to benefit significantly from future opportunities that will be available as we emerge from this recession," King said. "In addition, we will become even more focused on the business of serving our clients, rather than dealing with government distractions."

BB&T, U.S. Bancorp and American Express Co. (AXP) said they will record small second-quarter charges related to the buybacks. They received $3.1 billion, $6.6 billion and $3.39 billion, respectively.

Goldman and Morgan Stanley each received $10 billion in TARP money. In a short statement, Morgan Stanley said repaying the money "reflects both Morgan Stanley's strong capital position as well as the important systemic role the TARP program played in helping stabilize the U.S. banking system since the height of the financial crisis."

Capital One Financial Corp. (COF) said it expects to repurchase the $3.55 billion investment "in the coming weeks." Bank of New York Mellon Corp. (BK) has raised $2.9 billion through the recent sale of stock and debt, proceeds from which will go toward its $3 billion buyback. Northern Trust Corp. (NTRS) got $1.58 billion through TARP and has recently raised nearly all that amount itself the past month. State Street Corp. (STT) sold $2.5 billion in stock and notes, above the $2 billion received through TARP.

-By Kevin Kingsbury, Dow Jones Newswires; 201-938-2136; [e-mail]