Financial Prison Break: Banks Flee TARP

James Gattuso / May 12, 2009

In the weeks leading up to last week’s release of “stress test” results, there was quite a bit of talk about more bailout money for troubled banks — how much they would need, and how much Washington would force them to take. (Yes, force.)

How things have changed. Not only did almost half of the examined banks get a clean bill of health coming out of the tests, but most others came within striking distance of officially-determined stability.

Since then, there has been a virtual prison break by TARP-indebted banks as they rush to return bailout money. Every one of the passing banks that had received TARP funds has announced plans to return the money, totalling according to one report some $56.8 billion. (more…)