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**Jason** · 05-19-2009, 01:09 PM

WASHINGTON (AP) -- The nation's largest banks that want to exit the financial rescue program will have to demonstrate to the government that they can survive without its support.

In a joint statement, Treasury Secretary Timothy Geithner and other government banking officials said Wednesday that the 19 largest banks seeking to withdraw from the $700 billion rescue program will have to prove that they can borrow money without the support of the Federal Deposit Insurance Corp.

The new rules for repayment of bailout money were issued by the Federal Reserve and the Treasury Department one day before the government is scheduled to provide the results of "stress tests" it ran on the 19 banks.

The statement said that the 19 banks will be allowed to exit the $700 billion bailout program only if they have the enhanced capital requirements called for in the stress tests.

In addition, they will have to show they can borrow money without the support of the emergency program established by the FDIC in October at the height of the financial crisis.

That program allows banks to borrow money at lower rates because the FDIC guarantees the bank loans. Banks have more than $330 billion in debt outstanding under the program.

http://finance.yahoo.com/news/Banks-...&asset=&ccode=

05-19-2009, 01:09 PM	#1 (permalink)
Jason Faugh a ballagh Join Date: Dec 2001 Location: Pasco, FL Posts: 8,476 OS: Windows Vista My System Blog Entries: 2	US sets rules to leave bailout program WASHINGTON (AP) -- The nation's largest banks that want to exit the financial rescue program will have to demonstrate to the government that they can survive without its support. In a joint statement, Treasury Secretary Timothy Geithner and other government banking officials said Wednesday that the 19 largest banks seeking to withdraw from the $700 billion rescue program will have to prove that they can borrow money without the support of the Federal Deposit Insurance Corp. The new rules for repayment of bailout money were issued by the Federal Reserve and the Treasury Department one day before the government is scheduled to provide the results of "stress tests" it ran on the 19 banks. The statement said that the 19 banks will be allowed to exit the $700 billion bailout program only if they have the enhanced capital requirements called for in the stress tests. In addition, they will have to show they can borrow money without the support of the emergency program established by the FDIC in October at the height of the financial crisis. That program allows banks to borrow money at lower rates because the FDIC guarantees the bank loans. Banks have more than $330 billion in debt outstanding under the program. http://finance.yahoo.com/news/Banks-...&asset=&ccode= __________________ Posting Tips \| Advice for New People \| Common Fixes \| Agus na damnaithe fágtha gan focal Glaoigh ormsa i measc na naomh Last edited by Jason; 05-19-2009 at 01:10 PM.