SunTrust, PNC Uncertain About TARP Repayment Timing
April 23 2009 - 2:48PM
Dow Jones News
Other banks may be in a hurry to return government TARP funds,
but SunTrust Banks Inc. (STI) and PNC Financial Services Group Inc.
(PNC) say they aren't certain the time is right to repay.
SunTrust Chief Executive James M. Wells III told analysts
Thursday that while the bank would like to repay the government as
soon as is practical, that requires regulatory approval, which
isn't certain given "that approval will likely be dependent upon a
view that the recession is easing."
PNC wants to wait until Federal bank regulators complete their
financial stress test on the bank before deciding on TARP
repayment; results are scheduled for release Friday.
"I think in this environment, we have to be careful. It's always
good to have more capital than less during an economic crisis," PNC
Chief Executive James E. Rohr told analysts Thursday.
Several banks in recent weeks have expressed interest in
repaying the government aid, including Morgan Stanley (MS), Goldman
Sachs Group Inc. (GS) and J.P. Morgan Chase & Co. (JPM).
Goldman raised $5 billion in a follow-on offering last week
intended to finance part of its TARP loan repayment.
Earlier this week, U.S. Treasury Secretary Timothy Geithner
indicated that the health of individual banks won't be the only
measure used to decide whether firms will be allowed to repay their
Troubled Asset Relief Program funds. He said regulators also have
to consider the overall health of the financial system and the flow
of credit in determining repayment.
--By Lynn Cowan, Dow Jones Newswires; 301-270-0323;
lynn.cowan@dowjones.com