May 19 (Bloomberg) -- The Federal Reserve plans to announce its first response to banks’ requests to repay Troubled Asset Relief Program funds around the week of June 8, a central bank official said on condition of anonymity.

Regulators plan to make monthly recommendations to the Treasury on requests from the 19 biggest U.S. banks to repay TARP funds, the official said. Supervisors are in talks with several banks about getting approval, including supplementary information they will need to provide, the person said.

The timing means it may be at least three weeks before Goldman Sachs Group Inc., JPMorgan Chase & Co. and Morgan Stanley get an answer to their applications to refund a combined $45 billion of government funds. That would mark the biggest reimbursement to taxpayers since the $700 billion financial- rescue program began in October.

Earlier today, JPMorgan Chief Executive Officer Jamie Dimon said the firm expects to be able to repay its $25 billion in aid “in the next few weeks.” He told the company’s annual shareholder meeting in New York that participating in TARP became a “painful experience.”

Treasury Secretary Timothy Geithner said on April 21 that he would welcome firms returning TARP funds as long as their regulators sign off. He added that regulators will consider whether banks have enough capital to keep lending and whether the financial system as a whole can supply the credit needed to ensure an economic recovery.

$74.6 Billion

The target for the first responses coincides with the due date for banks to develop capital-raising plans after government stress tests of the 19 largest financial companies showed 10 need $74.6 billion in additional capital to survive a longer, more severe recession.

Most institutions seeking to repay TARP funds were deemed to have no capital need and will just need to provide the additional information to regulators.

One issue that remains to be announced is whether and how the Treasury will dispose of the warrants it will retain even after lenders buy back the preferred stock held by the government.

Treasury officials said last month that the U.S. would give up the warrants only after subsequent talks with appraisers and the banks to agree on a price. As long as the warrants remain, lenders would continue to face some federal constraints, including limits on hiring non-American citizens, the officials said on condition of anonymity.

CNBC reported earlier today that the Treasury plans to hold auctions for the warrants over a period of months, without specifying where it got the information.

To contact the reporter on this story: Scott Lanman in Washington at slanman@bloomberg.net.

Last Updated: May 19, 2009 13:04 EDT