Morgan Stanley to repay bailout funds Wednesday

Updated

When tallying the financial companies opting out of government rescue programs, be sure to include Morgan Stanley (MS). Tomorrow, it will repay the $10 billion in balance-sheet strengthening capital it received from the government's bank rescue program.

Morgan will also stop issuing bonds backed by the Federal Deposit Insurance Corp. The FDIC's debt guarantee program hasn't gotten as much attention as the Troubled Asset Relief Program (TARP) and its billion-dollar investments financial companies' preferred stock. But it has been a big help to banks that found it difficult to issue debt in the midst of the credit crisis.

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