Barack Obama Maintains Control Over Banks By Refusing to Accept Repayment of TARP Money - WSJ.com
The "Pay for Performance Act," just passed by the House,... is an outstanding example of class warfare. I'm an Englishman. We invented class warfare, and I know it when I see it. This legislation allows the administration to dictate pay for anyone working in any company that takes a dime of TARP money. This is a whip with which to thrash the unpopular bankers, a tool to advance the Obama administration's goal of controlling the financial system. Full Story »
Posted by Walter Cox - via Columbia Journalism Review
In the San Francisco Bay Area, two local banks found themselves in the position of being controlled by the U.S. government because they accepted relatively small amounts of TARP cash during the bank bailout. They did so not out of need--Mechanics Bank and the Bank of Marin are both exceptionally solid and are rated B+--rather they saw it as a civic duty to accept ,and immediately lend out, the TARP cash in order to do their part in stimulating the economy. Only AFTER THE FACT (!!) were they presented with the onerous terms--specifically the top 25 employees of each organization could not receive bonuses or raises. Yet that included nearly every employee of these small banks. Fortunately, they were seen as "small fry" and were allowed to give back the money. Not so lucky the larger banks.