Thursday, March 05, 2009

Return to Sender

Some regional banks that accepted TARP money are considering an early return to sender according to

Claiming they never wanted the money and may be tainted by having accepted it, regional banks like TCF Financial Corp and Iberiabank have initiated filings to repay the U.S. Treasury the money received under TARP.

Even Ken Lewis of Bank of America has hinted lately he would like to find a way to repay the TARP funds.

I guess the public floggings of bankers, the caps on compensation, the micromanaging of expenses by Barney Frank and the pressure to make loans to non-creditworthy borrowers has proven to be more of a dis-incentive to certain members of the banking community whose balance sheets had plenty of capital to lend.

Or maybe it's just the start of a big game of chicken between the banks and Congress.

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Tags : TARP , Capital Purchase Program , business loans , credit crunch

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