No Hope for Installment Loans as A-List Banks Repay Bailout Funds

Banks Feel The Heat

As many of the nation's A-List banks including Goldman Sachs decide to pay back government aid, it is a sign of impending doom for the public waiting in line for installment loans. Economists view such a move skeptically. While it may seem to be a sign of strength of the bank, other banks may feel the pressure to follow suit and get out of the government program prematurely.

In fact…

In fact, banks may not be in a position to afford the repayment of bailout funds but may still go ahead with it from a marketing perspective. Returning the Troubled Asset Relief Program money seems like a signal of strong credit in the market.

Are Banks Strong Enough Yet?

To prove this fact, Former Treasury Secretary, Paul O'Neill sent an email to ABC News disclosing the willingness of major U.S. banks to accept money at the beginning of the TARP program. If the banks had not needed the funds in the first place, they could have refused to accept them.

By repaying government aid, banks will be able to portray a stronger financial standing and more importantly, prevent administrative restrictions on executive compensation. Along with Goldman Sachs, Bank of America may also repay the $45 billion received from the government as bailout help. Five smaller banks have also made statements showing their willingness to return the TARP money. ... click here to read the rest of the article titled "No Hope for Installment Loans as A-List Banks Repay Bailout Funds"