Daily Mortgage Rates News – Goldman, Morgan Stanley and JP Morgan Repaying TARP?
Posted on | May 18, 2009 | 2 Comments
Daily mortgage rates news offer you information on the entire real estate market and how it effects overall mortgage rates. Today we are going to look at some of the better financial institutions applying to pay back TARP funds.
Today Bloomberg reported that Goldman, Morgan Stanely and JP Morgan have applied to repay up to $45 billion in TARP funds. This excerpt from the article pretty much says it all:
The three New York-based banks need approval from the Federal Reserve, their primary supervisor, to return the money, according to the people, who requested anonymity because the application process isn’t public. Spokesmen for the three banks declined to comment, as did Calvin Mitchell, a spokesman for the Federal Reserve Bank of New York. If approved, the refunds would be the biggest yet to the $700 billion TARP program established by Congress last year during the investor furor that followed the bankruptcy of Lehman Brothers Holdings Inc. Banks are keen to repay the money to shake off restrictions on compensation and hiring that were imposed on TARP recipients in February.
It will be interesting to see who follows suit in this as Bank of America and Citi will now be put on the spot. The issue at hand is the fact that Goldman, Morgan Stanley and JP Morgan were actually the better of the financial institutions while Bank of America and Citi continue to make horrible financial decisions. I honestly hope that Bank of America and Citi get their feet on the ground before they feel they should have to start repaying the TARP money they desperately need.
What will this do to mortgage rates? Well, if the economy is truly getting better, it is likely that this will push mortgage rates higher. Honestly, I don’t think this is any indication of how the economy is doing so I feel that rates will continue to fall as state in my mortgage rates prediction article.
Tags: Federal Reserve Bank > financial institutions > morgan stanley
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May 18th, 2009 @ 5:17 pm
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May 18th, 2009 @ 5:22 pm
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