Top ten US banks get permission to repay bailout funds under TARP

10 top banks in the US will be allowed by the Department of Treasury to repay funds received under the Troubled Asset Relief Program, as reported by Bloomberg who cited sources with the knowledge of the situation.

The news agency said that among the banks to repay the taxpayer money there is JPMorgan Chase & Co.

In a move to asses exposure of the largest 19 US banks to further risky real estate and other loans and to weigh how they might fare if economic conditions deteriorated the government conducted stress tests. As a result 9 of them were found healthy enough that they did not need to add more capital, while the other 10 were told they needed to fatten their capital cushions by a combined $74.6 billion.

Earlier on Monday the Federal Reserve reported that a group of ten large financial institutions submitted capital-raising plans that meet the central bank's guidelines, and that it will begin working with the institutions to make sure their plans are implemented quickly.

Ten institutions, including Bank of America Corp., Citigroup Inc., and Wells Fargo, drew up plans detailing how they propose to raise billions in private funds over the next five months in response to federal stress tests completed by the Treasury Department.