Banks are now eager to repay TARP
Many that have taken government money are dismayed by changing rules and public outrage.
For relatively strong banks, doing business with the government may be more trouble than it’s worth.
Banks are publicly declaring their intent to pay back loans from the Troubled Asset Relief Program, or TARP, as quickly as they can. They range from Charlotte-based Bank of America Corp., which is the country’s biggest bank, to tiny Iberiabank Corp. in Lafayette, La.
The banks complain about the rules that the U.S. Treasury keeps imposing on them retroactively, sometimes in ways that seem arbitrary or driven by constituents’ anger.
Some say they never needed the money but were cajoled into taking it by the Treasury, which wanted a show of industry support for its program.
“Congress has shown its hand – and that hand is both manipulative and actively malevolent,” said Nancy Bush, an analyst at NAB Research. Bush recommends that banks repay their TARP loans as quickly as possible, then “never, ever sign an agreement with the U.S. government again.”