Wall Street Pay, Bank Failure Risks Continue?

Andrew Ross Sorkin raises questions about the banks’ rushing to pay off their bail-out dollars, potentially jeopardizing their safety, again. Read Bailout Refund Is All About Pay, Pay, Pay. Very concerning!

“Sorry for a little rain on this parade, but take a moment to consider why Bank of America was really in such a rush to pay back the money it borrowed from the Troubled Asset Relief Program, or TARP.

Sure, its business had improved, somewhat. But there was another reason why the bank locked horns with Sheila C. Bair, chairwoman of the Federal Deposit Insurance Corporation, who was against the plan because she did not think the firm was healthy enough, according to people briefed on the conversations.

Bank of America was simply desperate to get out from under the thumb of government, and rid itself of the scarlet letter tainting its public image.

With Bank of America trying to recruit a new chief executive to replace retiring Ken Lewis, the firm needed to repay the bailout money to offer a competitive compensation package.”