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US to allow 10 banks to repay TARP money

The Treasury Department will allow 10 banks to pay back Troubled Asset Relief Program funds, Bloomberg said, citing people familiar with the matter.

JPMorgan Chase & Co is one of the banks, the news agency said, citing an anonymous source.

The Treasury did not immediately respond to a Reuters email, seeking comment on the report, that was sent outside normal business hours.

The government conducted “stress tests” on the 19 largest US banks to assess their exposure to risky real estate and other loans and to weigh how they might fare if economic conditions deteriorated.

Nine banks were considered healthy enough that they did not need to add more capital, while the other 10 were told they needed to fatten their capital cushions by a combined $74.6 billion. The results of the tests were released in May.

On Monday, the Federal Reserve said all 10 of the banks that were ordered to raise capital had come forward with plans that, if implemented, would raise the needed funds. (Reuters)