US banks look for a way out of Tarp as they realise its consequences
NEW YORK - US banks are reportedly rushing to repay their Troubled Asset Relief Program (Tarp) loans to get the US government out of their boardrooms as soon as possible.
Investment bank Goldman Sachs has become the first major bank to move towards paying back its $10 billion bailout, through a private investor share issue to raise $5 billion.
Bank of America and JP Morgan are also in a hurry to rid themselves of Tarp accountability, according to a report in UK newspaper The Guardian. The US government has handed out more than $310 billion through Tarp bailout loans.
The banks are reportedly keen to be free from the restrictions imposed on them by Tarp, including the need to pass US Treasury stress tests and limitations on their remuneration structures.
Bailout recipients with retail responsibilities also face investigation for increasing their fees, interest rates and customer penalties, after Tarp Congressional appointee Elizabeth Warren warned of taxpayers "paying twice" to support a failed Wall Street.
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