JP Morgan was a reluctant borrower of TARP money, while others borrowed out of necessity. Now, JP Morgan, Goldman and Morgan Stanley as well as few others are lining up to repay TARP money. Government has announced rules on repayment - that the bank must be able to raise capital without Fed Guarantee.
1. Issuing of common stock
2. Converting preferred to common stock
3. Issuing non-FDIC guaranteed debt
All these have helped banks to raise capital, but have significantly diluted bank shares. However, it reinforces investor confidence.
Banks need to operate without the strings attached to hire and retain employees. This is certainly key to capitalism to return to normalcy.