NEW YORK - GOLDMAN Sachs Group Inc, Morgan Stanley and several other big US banks said they were in a position to quickly repay Treasury capital injections after regulators released bank stress test results.
Officials assessed the financial strength of 19 financial institutions to see how much capital they would need over the next two years to survive a deep and extended recession.
BANKS WANT TO PAY BACK QUICKLY
A number of banks that were found to be adequately capitalized also rushed to say they wanted to free themselves of the Treasury as an investor as quickly as possible.
JPMorgan Chase & Co , American Express Co , Bank of New York Mellon , State Street Corp , US
A number of banks were found to have sufficient capital, paying the way for them to repay capital injected by the Treasury under the Troubled Asset Relief Program (TARP).
Though the money provided critical support during the darkest days of last year's financial crisis, it also carried restrictions, including limits on bonuses.
Goldman, which passed the test, said it believed it had met all requirements and was 'highly confident that we will soon repay the government's investment from the TARP's Capital Purchase Program.'
Goldman shares, down 4 per cent during regular trading on the New York Stock Exchange trade, rose 2 per cent after the results of the stress tests were announced.
Goldman, which received US$10 billion (S$14.7 billion) in TARP funds, last month announced the sale of US$5 billion of common stock and US$2 billion of debt that was not guaranteed by the US Federal Deposit Insurance Corp (FDIC).
Morgan Stanley, even as it was directed to boost capital by US$1.8 billion, said it too expected to repay its US$10 billion in TARP funds 'as soon as possible'. Morgan announced it would sell US$2 billion in stock and US$3 billion in 5- and 10-year notes not guaranteed by the FDIC.
Morgan Stanley shares, down 4.8 per cent in regular trading, fell another 1.4 per cent after the bell. -- REUTERS
