With Bank of America having repaid its TARP loans last week, others are looking to follow suit. That is proving, however, easier said than done. The Wall Street Journal reported on Tuesday morning that both Citigroup and Wells Fargo have found themselves at odds with the federal government over the amount of capital each will be required to raise to exit the Troubled Asset Relief Program.From WSJ.com (clarification in brackets added by BS&T):
Officials at Citigroup and Wells Fargo have prodded U.S. officials to let them proceed under similar terms [as Bank of America], people familiar with the matter said.
But officials with the Federal Reserve and Treasury have told the two banks that they will have to raise more capital relative to what they are seeking to repay than Bank of America did.