I do not want the government's fingers in my piggy bank! Apparently a lot of bigger banks don't either!
It leads me to wonder, why, if the government really does not want to nationalize the banks, are they not allowing banks who didn't want or need TARP money in the first place, return it?
As an example of what's happening, Investor's Business Daily tells of one bank which has no sub prime loans, no bad debts, no credit default swaps, didn't need, ask for or want the money.
They were told if they didn't take it there would be a multi-year public audit of their dealings. Now the government owns a 2% stake which gives them the right to control salaries, open access to the books, literally tell the bank how it can do business.
Again, I'm uncomfortable with the bully tactics the administration is using. To have guidelines for those that were truly bailed out is one thing; to force themselves on those who didn't want nor need their help smacks of extortion. If they succeed in nationalizing the banks and perhaps the auto industry, where will the strike next?
There is a place for government intervention, but intrusion into the private sector, under threat, where it's not needed is a dangerous precedent. I had enough of those during the Bush administration.
Keep a close eye on the charm offensive that's going on. It's only rhetoric. What counts is what's going on beneath the radar and it isn't pretty.