Some of the healthier banks want to pay back their bailout loans to avoid executive pay and other restrictions that come with the money. But the banks are balking at the hefty premium they agreed to pay when they took the money.

WE NEEDED TO JUST LET THESE BANKS GO BANKRUPT IN THE FIRST PLACE (THE ONES THAT HAD TO) AND LET THE OTHERS OPERATE!!?!

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

On Friday, Sun Bancorp of Vineland, N.J., became the sixth bank to exit the program, returning $89.3 million just three months after it received its loan.

Regulators are reluctant to approve the early repayments until banks can show that they have the capital to withstand further erosion in the economy and will not curtail their lending.

Both large and small banks have pressed the Obama administration to make it less costly for them to exit the bailout program by waiving the right to exercise stock warrants the banks had to grant the government in exchange for the loans. At a meeting last month, the chiefs of three of the largest banks separately asked Mr. Obama to direct the Treasury not to exercise the warrants, Mr. Fine said.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

The fund is down to its final $134 billion, according to Treasury officials, and is expected to face new requests for money in the coming weeks to aid tottering banks, the auto industry and possibly insurance companies.

.. But the administration is going to go back to Congress for more funds??!!

OBVIOUSLY "TOO BIG TO FAIL" IS STILL A PROBLEM - DO NOT LET BIG BANKS BECOME BIG BANKS!!