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Banks to Sell Stock to Repay TARP

By Kevin Spak,  Newser Staff

Posted May 11, 2009 11:43 AM CDT
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(Newser) – 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.

A branch office of Capitol One Bank is shown Thursday, May 7, 2009, in New York.
A branch office of Capitol One Bank is shown Thursday, May 7, 2009, in New York.   (AP Photo/Mark Lennihan)
The logo of Minnesota-based US Bank is shown at the Bloomington, Minn., branch Monday, July 16, 2007.
The logo of Minnesota-based US Bank is shown at the Bloomington, Minn., branch Monday, July 16, 2007.   (AP Photo/Jim Mone)
In this May 7, 2009 photo, a branch office of Capitol One Bank is shown in New York.
In this May 7, 2009 photo, a branch office of Capitol One Bank is shown in New York.   (AP Photo/Mark Lennihan)
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COMMENTS
Showing 1 of 1 comment
justme
May 12, 2009 12:13 PM CDT
Don't care why they want to do it. Just pay us back the money they never should have gotten in the first place. The government should regulate, not run businesses.

Capital race on for banks
CNN

 
stock market • Capital One • stock offering • TARP • US Bancorp

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