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Home > BizTimes Daily > Archives > March 4, 2009
U.S. Bancorp plans to return TARP funds
Published March 4, 2009 - BizTimes Daily
U.S. Bancorp chief executive officer Richard Davis said his company plans to join a group of banks that will return funds provided by the federal government's Troubled Asset Relief Program (TARP).
Davis told analysts in a conference call this morning that the Minneapolis-based company must first undergo a federal "stress test," but it will then seek to return $6.6 billion in TARP funds it had received
"At this point in time, we're dedicated and devoted to finishing the stress test … and I do believe we'll perform quite well in that stress test," Davis said on the call. "Following those outcomes, it is my intent that, given permission and given the ability - financial ability - to do so, that this company would like to emerge from the TARP assets as soon as possible and return that money to the government and move forward unfettered as it were."
U.S. Bancorp also announced it will slash its quarterly dividend by 88 percent to 5 cents per common share from 42.5 cents. The new dividend will be paid April 15 to shareholders of record as of March 31.The company is cutting its dividend because of "uncertainty in the financial markets and a weakening economy," Davis said.
TCF Financial Corp., which drew public scorn recently when it sent some of its employees on a luxury trip, announced Tuesday it plans to pay back more than $361.2 million in TARP funds.
