Why banks are repaying TARP funds

April 27, 2009

The commercial bankers just cannot win! Our politicians have stoked the rhetoric excoriating banks for not lending out the TARP funds (which has been debunked), then Congress recently changed the terms of the TARP agreements to make the terms much more onerous for TARP participants. Predictably, this has caused several banks to pay back the funds to the government; others have said they plan to pay the funds back soon. Now, many politicians are complaining that the banks should keep these funds to help the economy.

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