TCF Financial Corp. said Monday that it has received approval to repay the $361.2 million of government capital it received.

The $16.7 billion-asset Minneapolis company also slashed its dividend by 80%, to 5 cents a share. It attributed the cut to industry guidance from the Federal Reserve Board.

TCF had said last month that it planned to redeem the preferred shares sold to the Treasury Department under the Troubled Asset Relief Program.

The company said Monday that not having to pay a Tarp dividend would raise its earnings per share would by 14 cents annually.

"Participation in the Tarp has created a competitive disadvantage for TCF, and we believe it is in the best interest of our stockholders to repurchase these shares," William A. Cooper, its chairman and chief executive officer, said in a press release.

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