The big news today is that the Treasury Department will allow 10 major banks to pay back $68 billion in TARP money. The Treasury hasn’t said which ten, but I assumed it’s the banks that fared the best during the stress test. This would be banks like Goldman Sachs (GS) and JPMorgan Chase (JPM).
As I wrote yesterday, I’m still leery on many banks stocks even those with decent grades in Portfolio Grader. My view is that we’re only in the fourth inning of this credit mess.