JPMorgan Chase & Co., Goldman Sachs Group Inc. and Morgan Stanley were among the nine major financial institutions to announce Wednesday that they have bought back the preferred stock they issued to the Treasury Department under the Troubled Asset Relief Program.
Ten financial services companies were given $68.3 billion in the fall and received approval last week to repay the funds.
The only banking company of the 10 yet to announce repayment is State Street Corp., which ranked ninth in amount of Tarp funds received, at $2 billion.
JPMorgan Chase, U.S. Bancorp, American Express Co., Bank of New York Mellon Corp., BB&T Corp. and Northern Trust Corp. also announced plans to buy back the related warrants associated with Tarp. Goldman, Morgan Stanley and Capital One Financial Corp. did not address the warrants.
Bank of New York Mellon said that it expects a $197 million charge from its $3 billion repurchase, while Northern Trust expects a $68.6 million profit hit; it received $1.58 billion.
Goldman said its earnings will be cut by about 77 cents a share for paying roughly $425 million in dividends on its $10 billion of preferred shares. Morgan Stanley expects an $892 million profit reduction.