Quote:
Originally Posted by kane
I also read some good stuff this week about how the administration is considering not accepting the full TARP repayments from some banks. If they take the money and are paid back in full then they have no say in how the banks run. They want to keep a hand on the banks so they are considering not accepting the full payoffs so that they still have some control over them.
The idea, at least that this article put forth, was that there are a lot of banks out there making a lot of profit, but they aren't lending much money. If the government still has a hold of them they can kick the lending up and force them to make loans to business and consumers. If they take the money back then the banks are free to do as they want and they can just sit there and continue to rake in the profits from interest and late fees and not loan anything out.
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Yep. I had heard the same.
I guess he had made some speech in regards to 'opening up credit' or loosening credit, especially for small business and credit worthy people.