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Updated May 05, 2009

Official: Banks Seeking to Return Bailout Funds Must Meet Guidelines

FOXNews.com

The federal government on Wednesday is expected to issue guidelines to banks that have received money from the $700 billion Troubled Asset Relief Program and now want to return the money.

Banks that want to return government bailout funds will have to first show that they can do business without the help of federal guarantees, a senior government official told FOX Business Network.

The federal government on Wednesday is expected to issue guidelines to banks that have received money from the $700 billion Troubled Asset Relief Program and now want to return the money. That would free the banks from federal restrictions on executive compensation.

The official, speaking on condition of anonymity because the standards have not been made public, said banks will have to demonstrate that they do not need debt guarantees provided by the Federal Deposit Insurance Corp. The FDIC program allows financial institutions to borrow money at lower costs.

FOX Business Network's Peter Barnes and The Associated Press contributed to this report.

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