Traders cheer BofA's plan to repay TARP

Updated

Markets around the world cheered for Bank of America's (BAC) announcement that it will repay its TARP subsidy. Analysts praised the decision, saying it shows BofA is on the road to health. And when you look at the ratios, the bank looks healthier than others when they repaid their TARP with a Tier 1 capital ratio of 11% and a Tier 1 common ratio of 8.5%.

Bank of America executives are even more excited, because now there will be less control of the bank's compensation packages, making it easier to offer salaries and bonuses that compete with the other non-TARP banks. Clearly Wall Street is much closer to being healed than Main Street, thanks to the government bailouts -- but the big question is why has Wall Street received so much help to fully recover while Main Street is still struggling to pay the bills?

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