Saturday, March 7, 2009

Banks Try to Escape TARP Trap - Big Surprise?

From MarketWatch:

"Even though the government has stressed it doesn't want to manage big banks' day-to-day operations, a lot of political pressure has been exerted on institutions to get them to lend more. That's made bank investors concerned about potential government lending quotas."

"There's also the fear of the unknown -- that the rules could change,"

"The TARP rules have already changed to some extent."

"Lending decisions partly based on politics, rather than business, would be bad for shareholders"
And this is a surprise why?