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Banks to Sell Stock to Repay TARP
By Kevin Spak
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Posted May 11, 09 11:43 AM CDT
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(Newser)
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Hoping to take advantage of the up market, Capital One, US Bancorp, and a handful of other financial institutions are planning to sell a combined $7 billion worth of stock, the Wall Street Journal reports. Some of the resulting funds would be used to repay TARP money, getting the banks out from under the program's restrictions—particularly those on executive pay.
The plans sent the banks’ shares down in early trading, with Capital One tumbling 8% premarket. Many of the banks, including Capital One, weren’t ordered to raise capital by the government, but the recent run up in financials has convinced them to sell anyway.