Posted on Tuesday, April 21, 2009
There are some banks thaty just dont want to govt money anymore. Did they not want it in the first place and simply take it as a favor to make those who actaully needed it look less desparate? Do they not want the strings, including limitation on exec compansation? Do they feel too stgmatized by taking baliout money - that the public will think they doing worse than they actually are...or know ho badly they are doing? Or can they really afford to pay if back and stay healthy? Whatever capital requirement and other "tests" the Fed come up with will need to flesh out the do's from the don'ts, the have's from the have not's, the weak from the strong. And the process will need to be objective, transparant and understandable. At the same time, if too many fail, it may not make the Feds look so good, maybe their plans to fix or economy are not working? And it certainly wont help consumer and global confidence in our banking system (or the Feds).