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The Treasury Department has announced that it will let 10 banks repay their TARP money. This is, of course, the money generously provided to banks that didn’t want it in the first place.

The entire stress test and TARP money was simply to prop up two banks, Citigroup and Bank of America. Perhaps others, but those were the two main suspects. The government couldn’t say that outright so they needed to play as if they were going to help out all of the largest banks. So all the big boys got dragged into this mess.

The Treasury hasn’t said what the ten banks are but we can assume it will include the healthy guys like GS, AXP, STT and JPM. Personally, I’m more concerned with who won’t be on the list. For the banks left taking government money, they’ll now have to be under the Treasury’s compensation guidelines.

I’ll also be curious as to what the non-TARPers will do with their dividends.

Posted by edelfenbein at June 9, 2009 10:36 AM