US Backs Down On Limiting Banker Pay

US Treasury Secretary Tim Geithner said Monday that he didn't 'think our government should set caps on compensation' at firms which had received US bail-out funding. He did warn, however, that there would need to be changes in compensation models, which will tie reward to long-term performance standards.

In the meantime, Bloomberg reports that Morgan Stanley is also thought to have applied to the Federal Reserve to repay its TARP funding. CNBC reported last week that Goldman and JPMorgan Chase had done the same. And The Financial Times reports that State Street has begun selling $1.5bn in senior debt as part of an overall plan to repay its TARP borrowing.

Finally, Societe Generale's CEO Frederic Oudea confirmed Monday that his bank will draw down a further $2.3bn loan from the French government, which represents the second instalment of the bank's aid package.