TARP: Some Banks Just Say No

The Wall Street Journal is reporting that more than 50 banks have refused TARP funds. Some have applied for the funds and then rejected them even though approved.

A growing number of healthy banks are rejecting funds from the Treasury Department’s $700 billion bailout partly over concerns that the U.S. may impose tougher restrictions on institutions that take government cash.

At least 50 banks that qualified for aid have rejected the Treasury’s funds, say government officials, bank executives and the Government Accountability Office, who cite the prospect of new strings as a factor.

Those that withdrew include many of the small, healthy banks that were supposed to be at the heart of the government’s plan to restart lending. Many stepped back in the past several weeks amid suggestions by lawmakers and the Obama administration that they’ll toughen terms of the aid.

There’s hope. Apparently, we still have a few people engaged in finance in this country that believe they are perfectly capable of succeeding without government assistance and recognize the Faustian bargain that it involves. Now what can we do to encourage them.

First, let’s see the whole list of those who said no. The Journal didn’t publish it and I suspect the Treasury won’t either since they appear to be miffed that someone rejected their overtures. They have no problem telling us who the beggars are that scarfed up the money so let us see who the good guys are.

Once we get that list we all need to start patronizing them. Move your checking account, use their services and give them you loan business. While we’re at it maybe the overlords in Washington might want to figure out some sort of tax break they can pass along to them as a way of saying thanks and we need more guys like you.

Any other ideas, feel free to leave them.

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