Three Big Banks (Capital One, U.S. Bancorp, BB&T) to Repay U.S. Aid

[ClarkUSA]

May 11 (Bloomberg) -- Capital One Financial Corp., U.S. Bancorp and BB&T Corp. will sell shares to repay government bailout funds after stress tests showed the companies can weather a worsening recession without additional aid.... U.S. Bancorp Chief Executive Officer Richard Davis and BB&T CEO Kelly King had both said they wanted to repay their $6.6 billion and $3.1 billion in Troubled Asset Relief Program funds as quickly as possible.

“We firmly believe this action is in the long-term best interests of our shareholders and our company because of the risk and uncertainty associated with being a TARP participant,” King said in a statement.... Banks that accepted bailout money from the TARP are subject to government oversight and restrictions on compensation that that they say put them at a disadvantage to competitors. Banks that want to pay back the TARP money must get approval from the government and show they can sell debt in the public market without federal backing.

Banks will also include 5% interest in their repayment, which is a pretty good return on investment for taxpayers. I pay less than that for my HELOC.

[uponit7771]

1. Yeap, the banks Geithner said wouldn't need cash are raising cash for tarp repayment...

...so their execs can get more money?

Not only that but Geithner hasn't said who'll be able to repay them because they don't want the weaker banks sitting out there with no announcement.

Somethin aint right about this run up in the bank index RIFIN, I don't believe for a second the banks are worth 36% more than their lows of March.

GS for instance left out a loss month to be able to report profits and BAC sold off a division in China for the cheap.

[ClarkUSA]

3. They're selling stock to raise the cash, according to the story. Their reasons are explained, too.

I don't care what they pay their execs once they repay their TARP.

[AndyA]

2. The executives want their huge salaries, bonuses, and perks, so they

are going to pay back that money, no matter what.

What won't change is the culture of the financial institutions. They will overcharge their customers through fees and high interest rates as long as they can get away with it.

They will continue to outsource their "customer service" :eyes: to India so that you can barely understand the person on the other end of the line when you call.

Nothing has changed, really. We need new laws, new regulations, and consumers need to abandon the big banks that charge too much in order to pay the people at the top hefty salaries. Meanwhile, the teller at the drive through window, and the loan officer who actually deal face to face with customers make very little in comparison.

This is where big companies fail: the folks at the top take in all the money, and the people at the bottom who actually take care of customers and create income get nothing. Until this changes, the culture will remain corrupt.

[ClarkUSA]

4. "President Obama demands of Congress: Send me credit card reform legislation this month"

Check this out and help push your reps: http://www.democraticunderground.com/discuss/duboard.php?az=show_mesg&forum=132&topic_id=8398589&mesg_id=8398589

[mkultra]

6. have you done this yourself?

Have you abandoned the use of major banks? just asking.

[kirby]

5. This is good news...

At least we are getting some of the money back. Expect the financial stocks to drop due to share dilution.

[PBS Poll-435]

7. Wells Fargo's share price actually went up after the issuance of 7.5B in stock

On Friday.

+ about $3.75 - $4.00