It looks like we have a winner in that race to repay TARP funds. What's the prize? Wriggling free from all those strings attached to it.
And despite your initial reaction, it’s not Goldman Sachs or Morgan Stanley. Nope, CNBC’s Steve Liesman has confirmed that Louisiana based IberiaBank will be the first to return TARP funds.
Late in 2008, IberiaBank took $90 million from the government in exchange for preferred stock through a program called Capital Purchase Program in which the Treasury directly invested in healthy banks to provide loan capital to stimulate the economy.
But the game changed recently when Senator Dodd added new restrictions to the money – as part of the stimulus package. Now any bank that takes TARP funds is subject to stringent pay restrictions
As a result, IbeariaBank is sending the bailout money back. “Thanks but no thanks,” says CEO Daryl Byrd, President & CEO IberiaBank. “The rules are changing and we’re concerned that it could put our company at a competitive disadvantage.”