Banks, Tarp | featured news

With the wiring of nearly $10 billion to the Treasury, U.S. Bancorp and BB&T became the first large financial institutions to announce that they have repaid the government in full.

U.S. officials on Tuesday gave 10 of the nation's biggest banks approval to pay back a combined $68 billion of taxpayer money pumped into them to combat the credit crisis.

Administration could announce as soon as Monday that repayment can begin, but some officials warn that other types of support belie show of progress.

Citigroup will lend up to $5 billion in TARP funds in a municipal program to help finance construction of schools, airports, hospitals and other infrastructure products.

Capital One Financial joined U.S. Bancorp and BB&T, saying it would offer common shares as it looks to raise cash and pay back its TARP funds.

Banks that want to pay back their federal bailout funds and free themselves from government restrictions on compensation and dividends will have to sever their ties to another financial assistance program.

The bank holding company wants to return funds to taxpayers, but it will not do so before the stress test.

At least 50 banks have rejected funds from the Treasury over concerns that tougher restrictions may be imposed.