Goldman Sachs, JPMorgan, and Morgan Stanley to Exit TARP

Goldman Sachs (GS), JPMorgan (JPM) and Morgan Stanley (MS) applied to repay the combined $45 billion they received in October from the government’s Troubled Asset Relief Program, Bloomberg reported Monday, citing people familiar with the matter.

From Bloomberg: The three New York-based banks need approval from the Federal Reserve, their primary supervisor, to return the money…If approved, the refunds would be the biggest yet to the $700 billion TARP program..

Banks are keen to repay the money to shake off restrictions on compensation and hiring that were imposed on TARP recipients in February.

JPMorgan, Goldman Sachs, and Morgan Stanley were among nine banks that were persuaded in mid-October by then-Treasury Secretary Henry Paulson to accept the first $125 billion of capital injections from the TARP program.

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