By Jonathan Stempel

NEW YORK (Reuters) - JPMorgan Chase & Co (JPM.N: Quote, Profile, Research) and American Express Co (AXP.N: Quote, Profile, Research) on Monday announced plans to sell $5.5 billion of common stock, hoping to position themselves to quickly repay funds from the government's bank bailout plan.

JPMorgan will sell $5 billion of stock and American Express will sell $500 million. The JPMorgan offering will be priced by Tuesday morning, a person close to the matter said. The person was granted anonymity because the timing is not public.

Both New York-based companies were among the 19 U.S. lenders to recently undergo the government "stress tests" of their ability to weather a deep recession, and were among the nine that regulators said did not need more capital.

The U.S. Federal Reserve said on Monday the government will announce next week which of the 19 will be allowed to repay the government. One condition for repayment is that they are able to raise money in the public equity markets.

JPMorgan took $25 billion from the Treasury Department's Troubled Asset Relief Program, and said it expects to repay the sum this month. It said repayment is in "the best interests of the country and the company."

American Express took $3.4 billion from TARP, and Chief Executive Kenneth Chenault said his company has always viewed TARP as a "temporary" program.

Many banks have criticized TARP for its restrictions, including on compensation, and a perception among investors that recipients are desperate for capital.

Jamie Dimon, JPMorgan's chief executive, in April called it a "scarlet letter" for a bank to participate.