Geithner: More TARP paybacks coming

Treasury chief says he expects more bank bailout money will be returned soon.

EMAIL  |   PRINT  |   SHARE  |   RSS
 
google my aol my msn my yahoo! netvibes
Paste this link into your favorite RSS desktop reader
See all CNNMoney.com RSS FEEDS (close)
By David Ellis, CNNMoney.com staff writer

Ranking the rescues
The collapse of Lehman led to a deeper recession and a litany of government programs to try to end the pain. We rate just how bold and effective the plans have been so far.
Have you changed your spending habits in the past year?
  • Spending more
  • Saving more
  • No change

NEW YORK (CNNMoney.com) -- Treasury Secretary Timothy Geithner said Tuesday he expects a wave of banks to return government bailout money to taxpayers soon.

"It will depend on the institution, but for major banks in the country I think that money will come back relatively quickly," he said.

Speaking before the annual meeting of Securities Industry and Financial Markets Association in New York, Geithner offered few details on when those repayments could happen and from which companies.

Lenders that received taxpayer aid under the Treasury's Troubled Asset Relief Program, or TARP, have already returned nearly $71 billion to taxpayers, helped by renewed interest by private investors in the banking industry.

Still, some $134 billion remains invested in hundreds of community and regional banks, as well big bailout recipients such as Citigroup and Bank of America.

Both companies have been anxious to get out from under the government's thumb, given the level of scrutiny on such issues as how they compensate their employees.

As two firms that were recipients of "exceptional" government assistance, they were required to submit compensation packages for their top 100 most-highly compensated employees to the White House "pay czar," Kenneth Feinberg (Feinberg on the next round of pay rulings)

Geithner's comments Tuesday were tempered, however, by his expectations for automakers General Motors and Chrysler, both of whom double dipped on bailout money.

Even as both firms are putting massive restructuring plans into actions, the Treasury chief warned that it could take some time before either company returns taxpayer funds, especially if nationwide auto sales continue to remain weak.

"It will take time to get out of those companies," he said. To top of page

Features
They're hiring!These Fortune 100 employers have at least 350 openings each. What are they looking for in a new hire? More
If the Fortune 500 were a country...It would be the world's second-biggest economy. See how big companies' sales stack up against GDP over the past decade. More
Sponsored By:
More Galleries
Here are the 20 most ticketed cars in America The racy Subaru WRX tops the list, but some of the other ticket magnets will surprise you. More
Lamborghini to unveil 910 horsepower plug-in hybrid The Lamborghini Asterion concept car will have a V10 engine and three electric motors. More
The weapons of The Walking Dead Zombies are fiction, but the weapons on The Walking Dead are real. More
Worry about the hackers you don't know 
Crime syndicates and government organizations pose a much greater cyber threat than renegade hacker groups like Anonymous. Play
GE CEO: Bringing jobs back to the U.S. 
Jeff Immelt says the U.S. is a cost competitive market for advanced manufacturing and that GE is bringing jobs back from Mexico. Play
Hamster wheel and wedgie-powered transit 
Red Bull Creation challenges hackers and engineers to invent new modes of transportation. Play

Market indexes are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer Morningstar: © 2014 Morningstar, Inc. All Rights Reserved. Disclaimer The Dow Jones IndexesSM are proprietary to and distributed by Dow Jones & Company, Inc. and have been licensed for use. All content of the Dow Jones IndexesSM © 2014 is proprietary to Dow Jones & Company, Inc. Chicago Mercantile Association. The market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved. FactSet Research Systems Inc. 2014. All rights reserved. Most stock quote data provided by BATS.