State Street plans $1.5bn share sale as moves to repay TARP funds

STATE Street yesterday revealed plans to sell $1.5bn of stock and will also sell notes to help repay government bailout funds, as it took a $3.7bn charge to move some assets onto its balance sheet at a loss.<br />&nbsp;The Boston-based custodial bank and asset manager said it will use proceeds from the securities sales to help repay a $2bn infusion from the Troubled Asset Relief Programme (TARP).<br />&nbsp;It said the debt offering would not be backed by the federal government. Issuing such debt is a requirement for paying back TARP.<br />Many banks want to repay TARP funds because of restrictions imposed by the government, including on executive pay, and because holding the funds is viewed as a sign of weakness.