As the previous poster said, CPP was part of the original TARP legislation. The government bought preferred shares issued by the banks. It was intended to further bolster capital in banks so they could increase lending.
TARP = Troubled Asset Relief Program was supposed to be where the government was going to buy troubled assets from the banks. I'm not even sure they've bought anything under the TARP part of the legislation.
NTRS did the same after the market closed and sent Barney Boy a letter to STFU because his rants and grandstanding is hurting charities these sponsorships help.
Maybe these two banks will at least make the shorts think, but I doubt it. The short play on financials will at some time be the same as $147 oil, all bubbles burst at some point, could be a start. I would also guess more banks that can pay the money back will do so early next week, as the two that have now own the markets they are in, as big money knows they are sound.JMO of course.
Best signal to shareholders concerning a bank's soundness. Allegedly only sound banks were offered TARP. Banks who can afford to pay it back early appear that much more safe and sound. BB&T mgmt, put your money where your mouth is.
If you heard the CEO's presentation, he said they don't want to return the money for 3 years because there is a penalty if your return it before the 3 years are up. They have leveraged it and ARE making money off of it Good news is they can pay it back at any time without hurting their capital requirements.
As has been rumored on this message board long before the news about IBKC, BBT was supposedly looking to return the TARP money. Hopefully management of BBT can return the TARP money early and this weight can be lifted and the stock price can recover much of the 2009 loss.