...just wait for the next crisis that Main Street has to bail out.

A total of $200 billion was paid out to 500 banks under the Troubled Asset Relief Program (TARP). It was announced on 9.Jun 2009 that 10 big banks are being permitted to pay back $68bn earlier than planned.

This is a scandal on many fronts:

1. In permitting the repayment the government gives up almost $2 billion in annual interest payments that these banks would pay. Why should risk-taking tax payers that bailed these banks out in crisis now give up the returns due?
2. By allowing the banks out they are free from compensation restrictions and other government controls. Basically the same idiots that got us in this mess are off the hook without significant reforms and free to dream up some new complex financial structures to enrich themselves off the back of main street’s misery.
3. At the same time there is still no clear solution on how the banks will unload their troubled mortgage investments, so we remain in a credit crisis. Surely having the banks under TARP restrictions is prudent until this is resolved?

On the first point it should be noted that the Treasury has collected about $1.8 billion in interest payments, and may collect a further $4.6 billion from the banks, however, this was not supposed to about a quick buck, but long term stability.

Some of the banks that have received money from TARP and the amounts that they received (USD, millions) are noted below.

• Citigroup $50,000 $306,000 Two allocations: $25,000 on October 28, 2008
• Bank of America $45,000 $118,000 Two allocations: $25,000 on October 28, 2008 and $20,000 in Jan 2009
• AIG (American International Group) $40,000
• JPMorgan Chase $25,000 October 28, 2008
• Wells Fargo $25,000 October 28, 2008
• General Motors $13,400
• Goldman Sachs $10,000 October 28, 2008
• Morgan Stanley $10,000
• PNC Financial Services Group $7,579
• U.S. Bancorp $6,600
• GMAC Financial Services $5,000
• Chrysler $4,000
• Capital One Financial $3,555
• Regions Financial Corporation $3,500
• American Express $3,389
• Bank of New York Mellon Corp $2,000 to $3,000
• State Street Corporation $2,000 to $3,000
• Discover Financial $1,230

On 9 June 2009 it was announced the 10 banks announced as set to leave TARP were:

• Morgan Stanley
• American Express
• Bank of New York Mellon
• BB& T Corporation
• Capital One Financial
• JP Morgan Chase
• Northern Trust
• The State Street Corporation
• U.S. Bancorp
• Goldman Sachs