The PNC Financial Services (PNC) has completed repayments of the $7.6 billion it received in government aid as part of the Troubled Asset Relief Program (TARP).
Last month, PNC announced it was to pay back the funds by selling its Global Investment Servicing unit to the Bank of New York Mellon Group.
As part of the deal, the organisation also simultaneously offered $3 million worth of stock to help raise the funds.
James E Rohr, chairman and chief executive officer at PNC, said: “With signs of an improving economic environment and stabilizing financial system, we believe now is the appropriate time for us to redeem the preferred shares held by the US Treasury.
“As a result, we are pleased to have reached an agreement with our regulators to return the taxpayers' investment in PNC.”
The completion of the sale of the servicing unit is expected to increase PNC’s Tier 1 capital by $1.6 billion while leading to an after-tax gain of $5 million.
Meanwhile, the Treasury reported that the CIT Group has repaid its TARP debt of $2.3 billion.
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