The Treasury Department released answers to frequently asked questions Friday on how banks can repay Troubled Asset Relief Program funds.
The FAQ said banks must notify their primary bank regulator and the Treasury at CPPRedemption@do.treas.gov. Regulators and the Treasury will then decide how and if a bank may repay Tarp.
The Treasury said that banks wanting to repay part of Tarp now must pay a minimum of 25% of the issue price of the preferred stock.
The FAQ also lays out rules for treatment of warrants and dividends when repaying Tarp. The guidance can be found at http://www.treas.gov/press/releases/reports/CPP-FAQs.pdf.
Several banks, including JPMorgan Chase & Co., Goldman Sachs, and Iberiabank Corp., have expressed interest in repaying their rescue funds recently to escape further government restrictions.