10 big banks are allowed to repay the U.S. financial system is getting back on track

America's financial institutions, such as Goldman Sachs and Morgan Stanley, which have been hoping to get rid of the restrictions on wages and employment imposed by the Government's Asset Relief programme (TARP), were finally expected yesterday. US time yesterday the US Treasury official announced that 10 financial institutions, including Goldman Sachs, Morgan Stanley, JPMorgan Chase, American Express, New York Mellon, and Road bank, were allowed to repay government loans, a total of $68 billion trillion, far exceeding the estimated $25 billion trillion. "It's not a sign that trouble is over, but it's a positive sign," he said.　　U.S. President Barack Obama said. The banks have stepped up their efforts to get out of tarp after the U.S. Congress imposed restrictions on bankers ' salaries.　　Their approval to repay the funds is a sign of the stability of the financial system, and they will be able to move away from government restrictions to manage their companies again in their own preferences.　　Happy endings. Treasury Secretary Timothy Geithner said in a statement issued yesterday that "repayment of government loans [by financial institutions] is a positive sign of the recovery of the financial system". The Treasury expects the move to recoup about $68 billion trillion R A p, accounting for more than 1/3 of the total injection of financial institutions, while the US government has injected 199 billion dollars into some 600 bank financial institutions. The amount to be repaid far exceeds the "conservative" estimate that the US Treasury has repaid 25 billion of dollars this year.　　Authorities say they can use the money they repay to help other institutions, such as smaller banks. The announcement said banks could buy back the common equity warrants under the government's "fair market value". Although the Treasury does not estimate the value of this part of the warrants, Lenas Wilson, a professor of finance at Louisiana University, calculates that the total cost of the 10 banks ' repurchase warrants will reach $4.6 billion, of which JPMorgan warrants are worth $1.7 billion,　　Goldman Sachs and Morgan Stanley are required to pay 600 million of dollars each.　　Since the 10 banks have paid more than 1.8 billion dollars in preferred stock dividends to the government over the past 7 months, the Treasury's initial bailout money has so far not been lost but has earned a hefty dividend income. The impact of this decision is not just that. Market analysis argues that as the Fed rules that repayment institutions must be able to issue long-term bond financing without relying on FDIC guarantees, their balance sheets must also be able to withstand further economic deterioration, which the US Treasury allows to equate to declaring its balance sheet to the market to meet regulatory requirements,　　This helps stabilise markets and boost confidence.　　For financial institutions, the repayment of government loans is expected to be free of the government's decisions on its operations, including the government's pay for executive compensation and other restrictions; Market reaction is bland but the market response to the US Treasury bulletin is relatively flat. The main U.S. stock index on the day of the morningAfter a quick pullback, investors worried that the financial institutions would shrink their balance sheets after repaying government loans, thereby reducing credit support for businesses and consumers, which would be a bad boost to future economic confidence. The assets of US banks are still deteriorating, at least in several key areas, including credit cards, commercial loans and commercial real estate loans, Reuters quoted several analysts as saying yesterday. In Tuesday, according to ELIZABETHW Arren, chairman of the congressional Oversight Group, regulators should Elizabeth Warren the pressure test again for a longer period of time under tougher scenarios,　　The highest unemployment rate due to the recent stress tests will soon be replaced by a new record of unemployment. These disagreements are no doubt a reminder that the repayment of government loans by some banks does not mean that financial markets are fully stable, or even that repayment itself may be a potential danger for the future.　　Ouglas Elliott, a researcher at the Brookings Institution, quoted the Douglas Ello as saying that if BofA's assets were to fall another 3% per cent, it could bring them a net loss of about $300 billion. In this case, further standardizing the operation of financial institutions is one of the issues considered by the U.S. government.　　According to sources, U.S. Treasury Secretary Timothy Geithner said in Tuesday that the Obama administration would soon announce reforms to the financial services pay system to limit excessive risk-taking, and that in Wednesday it would unveil new rules for compensation to aid companies. Some institutions are allowed to repay the loan, which also makes the financial health Bank and the fragile bank a formal demarcation line. The move raises questions about the competitiveness of other big banks, such as Citigroup and Bank of America.　　Citigroup and Bank of America have not yet been allowed to repay a total of 90 billion dollars in TA RP funds. Our correspondent Locke