Goldman Sachs to Repay TARP on Wednesday

Goldman Sachs plans on Wednesday to repay the bailout funds it received under the Troubled Asset Relief Program (TARP) and the firm's chief executive issued a brief mea culpa of sorts for taking part in the "market euphoria" that preceded the economic downturn.

Goldman Sachs headquarters.

Goldman CEO Lloyd Blankfein wrote letters to Senate and House committee chiefs who oversee the banking industry Tuesday afternoon, saying that while "we regret that we participated in the market euphoria and failed to raise a responsible voice," he is proud of the way the firm managed the risk it undertook.

Blankfein went on, "We have a responsibility to the capital markets—to act as one of its guardians, helping to protect its integrity."

"The TARP program has played an important role in helping stabilize the financial system," Blankfein said, adding that "the firm is "grateful for the government's extraordinary efforts."

Goldman Sachs received $10 billion under the program.

The letter was addressed Senators Chris Dodd (D-Ct), and Richard Shelby (R-Al), chairman and ranking member of the Senate Banking Committee; and Representatives Barney Frank (D-Ma) and Spencer Bachus (R-Al), chairman and ranking member of the House Financial Services Committee.

• Click Here for a Copy of the Letter to Dodd and Shelby
• Click Here for a Copy of the Letter to Frank and Bachus (Same as Above)

Morgan Stanley also is expected to begin repaying billions of dollars in government bailout funds on Wednesday, a person familiar with the situation said.

Morgan Stanley spokeswoman Jeanmarie McFadden declined to comment.

Last week Morgan Stanley said it was among 10 major banks who would be allowed to repay loans they received from the U.S. Treasury's Troubled Asset Relief Program, known as TARP. Morgan Stanley received $10 billion under the program.

The results of a government stress test of major banks, released last month, showed Morgan Stanley needed to raise $1.8 billion in capital. The bank has raised more than $10 billion through equity, debt and asset sales.

JPMorgan Chase and American Express are also expected to begin repaying TARP loans on Wednesday, The Wall Street Journal reported last week, citing people familiar with the matter.

JPMorgan spokesman Joseph Evangelisti and American Express spokeswoman Joanna Lambert both declined to comment.

JPMorgan received $25 billion in TARP funds and American Express accepted $3.4 billion. Jamie Dimon, JPMorgan's chief executive, has called being subjected to TARP a "scarlet letter."

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