Tuesday, June 9, 2009

Good Economic News - Banks Repaying Government Funds

Well, this is good, isn't it?
The Treasury Department will allow 10 banks to pay back Troubled Asset Relief Program funds, Bloomberg reported Tuesday, citing people familiar with the matter.

JPMorgan Chase, whose CEO called the money a "scarlet letter," referring to the public backlash and federal scrutiny that came with it, is one of the banks, the news agency said, citing an anonymous source.

Banks have been eager to pay back bailout money almost since the moment they first accepted it. Now the government is deciding which banks can return the cash -- at the risk of setting up a system of winners and losers.

Odd that banks must first be granted permission before they can repay the funds. Or maybe it isn't odd at all. Maybe it's the cost of going into business with government. Kinda like doing business with the Mafia. Once you're in, you're in, and there's no getting out.

No comments:

Post a Comment