Tuesday - June 9, 2009

S&P500 was up +3.29 points or +0.35% today. Volume was light again. Oil was up again, at $71.09.
Ten banks are allowed to give back the TARP money that they received. They are: JPMorgan Chase (JPM), American Express (AXP), Goldman Sachs Group (GS), U.S. Bancorp (USB), Capital One Financial (COF), Bank of New York Mellon (BK), State Street (STT), BB&T (BBT), Morgan Stanley (MS) and Northern Trust (NTRS). Details about the 19 banks that went through the stress test and received TARP money can be found in this article. The 3 banks that received the most money, Citigroup (C) and Bank of America (BAC) ($45 million each), and Wells Fargo (WFC) ($25 million) are not allowed to give back the money. I don't see it as a good thing. The money was supposed to use for lending and lubricate the economy. Now the banks are giving it back because they don't want to be labelled as the "bad" banks and get intervened by the government.
Tomorrow will have interesting data: weekly crude oil inventories which are expected to be lower and weekly mortgage applications.


Cheapco said...

The banks are giving back money so that they can pay their executives a few millions in bonus

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