Obama to Decide if Banks Can Pay Back TARP

by Lebowski on April 20, 2009

So the government basically forced you to take TARP money and now they won’t let you repay it. This is a situation that has happened with both Goldman Sachs and JP Morgan.

Now it appears that the governemnt will subjectively decide whether to take the money back.

According to the FT: ” Strong banks will be allowed to repay bail-out funds they received from the US government but only if such a move passes a test to determine whether it is in the national economic interest, a senior administration official has told the Financial Times.

“Our general objective is going to be what is good for the system,” the senior official said. “We want the system to have enough capital.”

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