As many as 10 banks will repay TARP


As many as 10 banks that took TARP funds will be allowed to repay the money. It is not clear why. The Treasury and Fed have indicated concern that the firms may need some of the money back if the credit markets come under siege again. But the government may also want to replenish the TARP with money that may have to go to the auto sector and insurance firms.

Banks want out from under the pay rules that owing TARP money requires. They also don't want the government to own equity in their operations, a way for federal agencies to exert power over their decisions.