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An increasing number of banks and Wall Street firms that took bailout funds from the government under the TARP program want to give the money bank. One problem - the government won't let them. I'm not kidding.
"It should be called 'TRAP,' not TARP," said Brian Garrett, chief executive of Bank of the Bay in San Francisco, who is trying to return bailout funding. "Giving it back is harder than getting it."
Question - If the companies want to give the money back, did they really need the money in the first place ???
These companies say the burdens government is imposing on them harm their capacity for growth, and also sends their top financial talent to firms that aren't suffering under the government's TARP restrictions. In other words, the non-TARP receivers can still operate under the rules of the free market. TARP babies cannot.
In related news, House Financial Services Committee head Barney Frank (D-MA) has approved the introduction of the Pay For Performance Act Of 2009, that will allow the government to control the pay of ALL employees of companies that receive government assistance. As you may remember, back in february, the liar extraordinaire Frank, one of the prime enablers of the financial crisis, was longing to restrict the compensation of all financial companies, not just TARP receipients.
Fedzilla marches on, at warp speed.