Capital One Repays $3.57 Billion In TARP Funds

NEW YORK (AP) — Capital One Financial Corp. on Wednesday repaid the $3.57 billion it received last fall as part of the government's $700 billion bank investment program.

The McLean, Va.-based bank received the money as part of the Treasury Department's Troubled Asset Relief Program to help revive the stagnant credit and lending markets amid one of the worst periods of the credit crisis.

In a regulatory filing, Capital One said its payment included accrued dividends on the 3.6 million preferred shares the government held. It did not detail the value of the dividends. A Capital One representative did not immediately respond to a request from The Associated Press for more detail.

The government provided banks with capital in exchange for preferred stock and warrants to purchase common shares. The preferred stock carried an interest rate of 5 percent. The investment also included certain restrictions, such as caps on executive compensation that left some banks pushing to repay the loan as quickly as possible.

The filing with the Securities and Exchange Commission did not mention repurchase of the warrants.