The U.S. Department of the Treasury announced today that 10 of the largest U.S. financial institutions participating in the Capital Purchase Program (CPP) have met the requirements for repayment established by the primary federal banking supervisors. Treasury has notified the institutions that they are now eligible to complete the repayment process. If these firms choose to do so, Treasury will receive $68 billion in repayment proceeds.

From the Treasury’s $700 billion bailout package, financial institutions received $228.6 billion. The 10 banks that failed the stress test were also told they need to raise an additional $75 billion as a buffer for possible shocks in the economy. Since then, these banks have been rushing to raise the amount through share swaps and other financial maneuvers.

Financial organizations that received a part of the bailout money have chafed against some of the limits imposed on them. Most notable, these organizations want to get rid of the limits on executive compensation.

Combined with repayments received to date from other institutions, Treasury will have received approximately $70 billion in repayments from CPP participants. More than 600 banks across the country have participated in the CPP, representing $199 billion in investments.

“These repayments are an encouraging sign of financial repair, but we still have work to do,” said Secretary Tim Geithner.

Among the banks that intend to repay some part of the bailout fund include JPMorgan Chase, Morgan Stanley, Goldman Sachs, Bank of New York Mellon Corp., Capital One Financial Corp. and American Express Co. and few more. Together, they applied to pay back $68 billion.

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