While you're all outraged about the bailout...

Originally Posted by TheMercenary

Quite interesting. The failure of the administration to allow banks to repay the taxpayers is very telling about the intentions of the the Obama Administration. It is all about power. Here we have a perfect example of those financial institutions trying to do the right thing and help out the taxpayers. And they won't let them.

I would like to see more than just this editorial (opinion) before jumping to conclusions.

As I understand it, banks that agreed to take TARP money agreed to a two year (I think) period before they can return the funds w/o Dept of Treasury approval.

The primary purpose being to provide greater assurances that the bank will have adequate capital after repayments.

A secondary reason why some bankers may want to repay early is to avoid potential limitations on executive compensation that may be legislated while they still have TARP funds.

I dont want a bank paying funds back early w/o adequate capital reserves in place or a bank paying back funds and then implementing lending policies that are so tight they restrict the reasonable and necessary flow of credit to consumers and small businesses ....in order to play the "good guy" when it fact, it could be irresponsible and based solely on that banker's desire for no limits on his compensation.

In fact, as the editorial notes, four banks that were deemed to be "well capitalized" were granted waivers to repay TARP funds early.

I certainly dont believe the editorial presents a full and balanced picture in order to draw an objective conclusion about "the intentions of the Obama administration"...or that it represents a "perfect example of the those institutions trying to do the right thing."