“These repayments are an encouraging sign of financial repair, but we still have work to do,” Treasury secretary Timothy Geithner said in a one-page statement. Geithner has said that money paid back into the $700-billion bailout fund by healthy banks can be reused to help smaller banks, including those that have already gotten one bailout.
As a condition of being allowed to repay the rescue funds, banks had to show they could raise money on their own from the private sector both by selling stock and by issuing debt without the help of FDIC guarantees. In addition, the Federal Reserve had to agree that their capital levels were adequate to support continued lending.
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