Ten banks are going to be able to give back TARP. These financial institutions will be announced today and their freedom will be given back. We believe in a free market system with minimal government control. Obviously, the financial industry needs tight regulatory control but they also need a free hand in running their businesses. These ten institutions will have a competitive advantage over the remaining TARP banks. Expect a free flow of human capital from TARP banks to non-TARP banks as employees don't want their compensation determined by the government. The same employee exodus has occurred in the past few months as TARP banks lost key personnel to boutiques.
Unless the government recognizes that compensation must be determined by the free market system, the weak TARP banks will only become weaker. The result will be more failed institutions and the loss of taxpayer money.
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