US banks 'have repaid 75% of TARP money'

23 June 2010

Timothy F Geithner has said that banking institutions in the US have repaid the majority of the bailout money they received from the government.

The Treasury secretary revealed that about 75 per cent of the cash received by the likes of Bank of America, Goldman Sachs and Morgan Stanley under the Troubled Asset Relief Program (TARP) has been already paid back.

Furthermore, he said these payments had generated an additional $24 billion in revenues for US taxpayers.

According to Mr Geithner, the Treasury is now "well on [its] way" to winding down TARP ahead of the authority to make new commitments expiring in October 2010.

"We will continue to manage remaining investments in a way that protects taxpayers and supports our financial and economic recovery," the Treasury secretary added.

Earlier this month, it was predicted by the Financial Times that US banks could pay out as much as $2 billion as a result of the UK's tax on bonuses.

By Claire Archer

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