The treasury department is refusing large banks to pay back their tarp money. Some of the major banks have asked to de-tarp themselves. There is some debate if the government would accept it. They think that if one of the large banks paid their Tarp money back, the other ones would feel pressured to pay back theirs.
The debate is if they pay it back and come back six months later, we are in the same position as we were before. The rational issue then is should we let them fail if they pay the money back and then come back six months later. If not you there goes the government inflating to running companies even more so. We would have the government firing CEOs, guaranteeing lube jobs for your car from GM, handing out toasters at the local bank. It’s as if America is sleeping and the government is in fact become a George Orwellian big brother.
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