Several of the 19 largest banks that participated in the recent government stress tests are eager to pay back the money they received from the government’s 700 billion dollar bailout. Regulators are saying not so fast, though. What does this mini feud mean for our money?
Rick Bastian says many of the big banks are eager to rid themselves of government control and other strings tied to receiving TARP funds. They’re now raising capital in an attempt to pay back Uncle Sam early. However, regulators do not want banks, who are ready and willing to write the checks back, to be perceived as stronger than those who are not. So, according to Bastian, banks should not be rushing to give back the money just yet, especially when no one is certain of what direction our economy is headed.
Sources are saying any type of announcement on returning TARP funds will not come until at least June 18th.