The banks declined to comment, but Reuters says sources told them that they've all submitted applications to repay the TARP money.

Earlier Tuesday, JPMorgan Chief Executive James Dimon told shareholders he expects regulators will let a few strong banks repay TARP funds within weeks.

"We believe we can and should be able to repay TARP," Dimon said during remarks at his bank's annual meeting. "We believe the government will allow a few well-capitalized banks to repay TARP in the next couple of weeks."

Banks discuss TARP repayment with U.S.: Fed official [Reuters]
(Photo:epicharmus)

Banks cut off mortgage brokers [Bankrate]

The NYT explains:

Analysts said that after fevered speculation last week about bank nationalization, many investors now expect the government to move in that direction, despite statements from the White House supporting a privately held banking system. Stock markets dropped on Friday amid concerns that a broad government takeover could wipe out financial shareholders.

Now, with the government set to begin the "stress tests" on Wednesday, investors want to know which banks will be deemed healthy and which will not, analysts said. Of most pressing concern are big banks including Citigroup, Bank of America, Wells Fargo and JPMorgan Chase, followed by regional chains.

Those stress tests, meant to identify the banks that require government help, seem to be adding stress to the markets.

Fortune says:

Testing big U.S. financial firms seems like a good idea. But bank stocks, which were already hit hard before Geithner revealed the plan last week, have only been under renewed pressure as investors have been taking bets on which banks might fail stress tests - and possibly be forced to sell more stock to the government, further diluting shareholders.

Bank stress tests cause more stress [Fortune]
Stocks Slump on Corporate Woes; Indexes Fall by 3.4% [NYT]

Even top executives whose banks made such risky loans they imperiled the economy have been largely spared any threat to their jobs, as Washington pumped billions in taxpayer money into the companies. Less fortunate are more than 100,000 bank employees laid off during a two-year stretch when industry unemployment nearly tripled, bank stocks plummeted and credit dried up.

"The same people at the top are still there, the same people who made the decisions causing a lot of our financial crisis," said Rebecca Trevino of Louisville, Ky., a mother of three who was laid off from her job as a Bank of America training coordinator in October. "But that's what tends to happen in leadership. The people at the top, there's always some other place to lay blame."

The article specifically calls out certain banks and credit card companies that made especially risky loans, but whose executives are still happily managing away: JPMorgan Chase & Co, Cleveland-based KeyCorp, and Capital One Financial Corp..

It seems we can only hope these folks are as good at saving a financial system as they are at wrecking one.

AP: 9 in 10 execs at bailout banks remain on job [MSNBC] (Thanks, Kerry!)

From the Daily Herald:

Washington Mutual, better known as WaMu, worked furiously to open about 180 branches in 2003 to 2004, but then closed about 60 of them over the last two years. WaMu then became the largest U.S. bank to fail and was scooped up by JPMorgan Chase last September.

The current consolidation will merge Chase and WaMu branches that likely are across the street or down the block from each other. Customers should continue using their WaMu checks and debit/ATM card and their same account numbers, even if their branch is consolidating into a nearby Chase branch.

By Jan. 27, customers could learn whether a WaMu branch is affected by going to www.wamu.com, clicking on "locations" and entering their WaMu branch location.

WaMu branches to close [Daily Herald]
(Photo:knightraven)

If you bank at both WaMu and Chase, your deposits continue to be insured separately today just as they were yesterday, and generally will be for another six months. At that time, your deposits will be insured by the FDIC for up to $100,000 per depositor (with an additional $250,000 for self-directed retirement accounts), and will continue to be backed by the strength and security of JPMorgan Chase.

Here's the full FAQ:

Frequently Asked Questions:

Q. What will happen to my account at WaMu? And to my branch?
A. It's business as usual. As of September 25, 2008, JPMorgan Chase has assumed the deposit and loan accounts, and all branches, of Washington Mutual. You can continue to access your accounts just the way you've accessed them in the past: use your same branch, same debit, credit and ATM cards, same checks.

Q. Is my money safe?
A. Yes; in addition to FDIC insurance, now you're assured your bank is backed by the strength and security of JPMorgan Chase. If you have money in both banks, your deposits have separate FDIC insurance for up to six months. Come see us and we can help you review your coverage.

Q. What if I have more than $100,000 at WaMu?
A. Your money is secure and now protected by the strength of Chase. Chase assumed all deposits of Washington Mutual.

Q. When can I bank at Chase branches in my area?
A. We'll be working hard to combine systems as quickly as possible so you can begin to enjoy expanded branch convenience in your area, and we expect system changes to begin late next year. We'll let you know in advance of any changes; in the meantime, simply continue to bank at WaMu branches as you do today.

Q. Do my direct deposit, automated payments and transfers remain the same?
A. Yes. These services all continue for you without interruption or action on your part.

Q. Where do I send my credit card and loan payments?
A. There is no change in how or where you make payments; payment instructions and addresses remain unchanged.

Q. I have a Chase credit card, car loan, and mortgage. Can I make payments at a WaMu branch now?
A. Not yet! We'll let you know when you can make Chase credit card, car loan, mortgage or other loan payments at WaMu branches, or vice versa.

Q. I have deposit accounts at both WaMu and Chase. Are both of my accounts insured?
A. Yes! Your deposits are insured separately today just as they were yesterday, and generally will be for another six months. At that time, your deposits will be insured by the FDIC for up to $100,000 per depositor (with an additional $250,000 for self-directed retirement accounts), and will continue to be backed by the strength and security of JPMorgan Chase.

Q. I'm a small business owner. What will change for my business?
A. Immediately, no change at all – bank just as you do today. As our systems merge, we look forward to bringing you innovative services ranging from online invoicing to convenient ways to help you manage your cash flow. Chase is a national leader in business banking services, and is the nation's #1 SBA lender.

Q. I have a relationship with the WaMu Commercial Group. What will change for my business?
A. Immediately, no change at all - work with the Commercial Group just as you do today. As our systems merge, we look forward to bringing you innovative services. Chase is a national leader in commercial lending and cash management solutions.

Welcome WaMu [Chase]

"We take this very seriously, and we are working with EMC [a mortgage company JPMorgan Chase owns] and the family's attorney to make this right," said Tom Kelly, a JPMorgan spokesman.

After the Dickson's bought the house back in May, the foreclosure proceedings were supposed to have been stopped. They weren't. That's when the former owner's mortgage company (owned by JPMorgan Chase) hired "Field Asset Services Inc." to drill the locks and "empty the house," according to the Austin American-Statesmen. Field Asset Services claims that the Dickson's possessions were given to area thrift stores, but they have been unable to locate them.

Ordinarily, when personal possessions are left in a foreclosed home a court order is needed to remove the items and the owners are given the opportunity to reclaim them within 24 hours. JPMorgan Chase says its not sure if there was a court order in this case.

Elizabeth Bradburn, the Dicksons' real estate agent, is organizing an effort to collect donations for the family. She said gift cards to furniture and household goods stores are preferred and may be sent to the Dicksons' business address: 9800 N. Lamar Blvd.,

No. 315, Austin TX 78753.

"It's been awesome to see people mobilize and want to help out," Hance [Dicksons' attorney] said. "The Dicksons are, of course, very grateful and touched by the outpouring of support from the community."

Cedar Park couple sues Austin company in foreclosure mix-up [American-Statesmen](Thanks, Ron!)