Fed asks U.S. banks to submit TARP repayment plans

WASHINGTON (Reuters) - The U.S. Federal Reserve this month asked banks that were part of "stress tests" conducted earlier this year that have not yet repaid money injected under the Troubled Asset Relief Program (TARP) to submit plans to do so, a person familiar with the situation said on Tuesday.

The banks may be allowed to repay TARP money soon if they have been able to raise common equity recently and if they show they would continue to exceed capital buffers after redemptions, the source said.

The Federal Reserve Board said earlier this month that nine of 10 large banks ordered to raise capital in May had met or exceeded their goals, with the exception of GMAC LLC.

(Additional reporting by Ajay Kamalakaran in Bangalore)

(Editing by Theodore d'Afflisio)

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