- Five Bank Holding Companies Announce Approximately $55 Billion in CPP Redemptions
- June 30, 2009 | Author: Darren M. Cooper
- Law Firm: Alston & Bird LLP - Washington Office
Following Treasury's approval last week to allow 10 of the largest U.S. financial institutions participating in the Capital Purchase Program (CPP) to repay up to $68 billion in CPP investments, the following bank holding companies announced today the following CPP redemptions and related payments:
- BB&T Corporation - $3.1 billion in preferred stock, plus a final dividend payment of about $13.9 million, "bringing BB&T's total dividend payments under TARP to approximately $92.7 million."
- Goldman Sachs Group, Inc. - $10 billion in preferred stock plus a one-time preferred dividend of approximately $425 million.
- JP Morgan Chase & Co. - $25 billion in preferred stock and "will also notify the U.S. Treasury today of its intent to repurchase the 10-year warrant issued to the Treasury in connection with the preferred investment." Through today's redemption date, JP Morgan has paid the Treasury "an aggregate of $795,138,889 in dividends" on its preferred stock investment.
- Morgan Stanley - $10 billion in preferred stock.
- U.S. Bancorp - $6.6 billion in preferred stock and "will give notice to the Treasury of its intent to repurchase the 10-year warrant issued in conjunction with the preferred stock."