So today the government will accept TARP repayment from ten of the largest banks in the US so they can quickly rid themselves of pay restrictions. At the same time we discover the TARP stress tests really weren't very stressful and that it's doubtful the banks have sufficient funds to withstand the increasing unemployment which will impact the economy and cause more troubles for banks. It's not as though I had high hopes or much trust during this process but this is only going to add to the sagging support the country has for Obama's economic team. Nobody likes to get screwed and this really looks like the public has been lied to and screwed.
U.S. officials Tuesday gave 10 of the nation's biggest banks approval to pay back a combined $68 billion of taxpayer money pumped into them to combat the credit crisis.Once again it's all about their precious bonus money. To hell with the health of the country and tough luck for the smaller banks. The worst of it is that Obama owns this problem now and without a strong economic recovery - a doubtful scenario any time soon - this will not go down well with voters.
The 10 banks are Morgan Stanley, American Express, Goldman Sachs Group, JPMorgan Chase, State Street, U.S. Bancorp BB&T, Northern Trust, US Bancorp and Capital One.
Many banks have chafed at the restrictions on executive pay that accompanied the capital injections. Eight of them were pressed by the U.S. Treasury to take government funds in late October at the height of the crisis.
