Morgan Stanley pays back $10B in bailout funds

Morgan Stanley pays back $10B in bailout funds

STEPHEN BERNARD | June 17, 2009 03:23 PM EST | AP


NEW YORK — Morgan Stanley said Wednesday it repaid the $10 billion it received last fall as part of the government's $700 billion bank investment program.

Morgan Stanley 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.

The New York-based bank also paid the Treasury Department for accrued and unpaid dividends on the investment. In total, Morgan Stanley paid the government $10.086 billion, according to a filing with the Securities and Exchange Commission.

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.

more...

http://www.huffingtonpost.com/huff-wires/20090617/us-morgan-stanley-tarp-funds/

and they wouldn't have given the 10 billion back, except in order to keep it, they would have had to go under strict (for them) government regulations. And they didn't want to do that.