No Parting from TARP

More

I've been expecting this for a while:  Treasury isn't going to let the banks pay back TARP money unless it damn well feels like it.


I'm not clear what the point is.  At this point, everyone knows which of the systemically important institutions can probably repay the money, and which of them can't.  Perhaps the idea is to keep Goldman from carrying out its purported plan to bust the compensation caps and thereby poach top talent from the other firms.

On the other hand, this seems certain to discourage financial institutions from participating in any future Treasury programs.  Once you take the King's Shilling, apparently you've enlisted for life--and your Congressional drill sergeants reserve the right to change the rules of your employment at will.

Jump to comments
Presented by

Megan McArdle is a columnist at Bloomberg View and a former senior editor at The Atlantic. Her new book is The Up Side of Down.

Get Today's Top Stories in Your Inbox (preview)

A Technicolor Time-Lapse of Alaska's Northern Lights

The beauty of aurora borealis, as seen from America's last frontier


Join the Discussion

After you comment, click Post. If you’re not already logged in you will be asked to log in or register. blog comments powered by Disqus

Video

A Time-Lapse of Alaska's Northern Lights

The beauty of aurora borealis, as seen from America's last frontier

Video

What Do You Wish You Learned in College?

Ivy League academics reveal their undergrad regrets

Video

Famous Movies, Reimagined

From Apocalypse Now to The Lord of the Rings, this clever video puts a new spin on Hollywood's greatest hits.

Video

What Is a City?

Cities are like nothing else on Earth.

Video

CrossFit Versus Yoga: Choose a Side

How a workout becomes a social identity

Video

In Online Dating, Everyone's a Little Bit Racist

The co-founder of OKCupid shares findings from his analysis of millions of users' data.

Writers

Up
Down

More in Business

Just In