NEW YORK ( TheStreet) -- Citigroup ( C) won't gain much from paying back the government now, while Wells Fargo ( WFC) and regional banks including Comerica ( CMA) are in a good position to do so. >>POLL: Should Citigroup Rush to Repay TARP? The following table comprises the 10 largest banks that haven't yet arranged for repayment of the Troubled Asset Relief Program, or TARP, excluding Bank of America ( BAC), which raised more than $19 billion in common equity last week. Bank of America owes the government $45 billion. Regulators are most concerned about TARP banks' tangible common equity ratio because that measure of capital strength excludes preferred shares, including those held by the government. (Banks have a set of regulatory capital ratios that have to be met to be considered well-capitalized under normal circumstances.)
Rochdale Securities analyst Richard Bove told TheStreet.com that "to assume Citi can get out of this relationship makes no sense whatsoever."
Comerica has performed reasonably well through the credit crisis, and CEO Ralph Babb has clearly stated his intention for the company to repay TARP soon. While KeyCorp has been steadily losing money for five quarters, earlier capital increases should enable to the company to repay TARP without much further dilution to shareholders. -- Reported by Philip van Doorn in Jupiter, Fla.