JPMorgan, Amex Launch Stock Offers To Repay TARP

DANIEL WAGNER

WASHINGTON (AP) — JPMorgan Chase & Co. and American Express Co. are the latest recipients of federal bailout funds to launch public stock offerings aimed at proving to the Treasury Department that they can raise capital on their own and do not need to keep taxpayer aid.

JPMorgan said Monday it plans to raise $5 billion through a common stock offering as it seeks to repay the $25 billion that the bank was awarded under the government's troubled asset relief program. American Express also said Monday it will sell $500 million in stock in a public offering to help pay back part of the $3.4 billion in funds it has received under the federal government's Troubled Asset Relief Program.

Banks have chafed against rules imposed by Congress after they took the bailout money, including limits on executive compensation.

The Federal Reserve on Monday laid out rules for how the 19 largest financial institutions can wind down their reliance on government support. The banks, which have assets of more than $100 billion, were subjected to "stress tests" to determine their financial strength. They have received a total of $228.6 billion from Treasury's $700 billion financial bailout package.