In news released yesterday, the Federal Reserve has approved the repayment of funds received from the Troubled Asset Relief Program (TARP) by some of the big banks beginning as early as June.

Several of the country's 19 largest banks, who recently participated in the government's recent stress tests, are looking to pay back the bailout funds they sought in order to stay afloat.

10 out to the 19 major U.S. banks that the government tested needed to raise $75 billion in additional capital in order to survive a deeper economic recession.

The government stress test was intended to measure whether or not the nation's 19 largest banks would need to scamper to raise additional capital in order to weather a further recession.

Additional information is being required by the banks in order to support the request for repayment of the TARP funds, a Fed source said.

Under the rules for repayment of TARP funds, banks who have received bailout funds must show that their current financial status is stable and that they will not need further future funds from the Federal Deposit Insurance Corporation.

If the banks meet the current rules for repayment, the Treasury Department would have the final approval to allow banks to return the bailout funds.

There was no mention of any specific bank who has requested to pay back their bailout funds, but other sources familiar with the situation have stated that Morgan Stanley and Goldman Sachs Group Inc. have officially requested permission to return federal troubled asset money.

The biggest and perhaps most difficult problem that will need to be solved, when the banks begin to return TARP funds, will be the fact that the banks will have to not only proffer the repayment, but will also have to rectify the repayment of warrants that were obtained (by the government) as part of the initial loans in the form of preferred stock purchases.

The warrants, originally, issued allowed the government to purchase stock at a specific price over a period of 10 years.

Since many of the banks are requesting to return the TARP funds, the banks and government will need to come to an agreement on how much the stock warrants are worth.