U.S. Bancorp pays back $6.6B in TARP funds

U.S. Bancorp said this morning that it has redeemed the $6.6 billion in preferred stock it issued to the U.S. Treasury under the Capital Purchase Program.

The Minneapolis-based bank also is giving notice to the Treasury of its intent to repurchase the 10-year warrant that was issued in conjunction with the stock.

Many of the banks that accepted bailout funds later spoke out against the program, saying government regulations came to light after they received the money.

"The devil's in the details," John Wilson, president of U.S. Bank in Springfield, told SBJ in April. "And as the details have come out, the advantage of taking this money down has diminished."

In May, the bank announced it was selling $2.5 billion in common stock to the public with plans to use the proceeds to pay off the bailout.

"Today's repayment of the TARP funds is a significant step forward," U.S. Bancorp President, CEO and Chairman Richard K. Davis said in a news release. "The redemption allows our company to return to operating from a position of both independent strength and strategic flexibility."

U.S. Bank is the sixth-largest commercial bank in the country. The holding company has $264 billion in assets and operates 2,847 banking offices, including eight in Springfield.

The bank will release its second-quarter earnings before the market opens on July 22.