10 big banks receive OK to repay $68B in bailout money

The Treasury Department approved plans today for 10 of the nation’s largest banks to repay $68 billion in government bailout money. The department says the banks, which were not named, will be allowed to repay the money they received from the $700 billion Troubled Asset Relief Program created by Congress in October at the height of the financial crisis. The banks have been eager to get out of the program to escape government restrictions such as caps on executive compensation. Among the banks that passed government “stress tests” last month and likely were approved to repay the bailout funds are Goldman Sachs Group Inc., JPMorgan Chase & Co. and American Express Co. Experts say allowing 10 banks to return $68 billion in bailout money illustrates some stability has returned to the system but caution that the crisis isn’t over. Some worry the repayments could widen the gap between healthy and weak banks. More than 600 banks nationwide have received nearly $200 billion in TARP money, and 22 smaller banks already have repaid it.