The banks thought they were going to get free money from the taxpayer but that was before Obama started changing the rules on a day-to-day basis. Once a bank signed on to accept this money they were then tied to every change in the political winds.
Signature Bank President and CEO Joseph DiPaolo said that terms imposed on TARP-funded banks â€œadversely affected our business model and it became apparent that we should return these funds to the Treasury. The return of these funds allows us to continue to execute our business model, which includes the successful recruitment and retention of highly talented banking professionals throughout the metropolitan New York area.â€
Obviously the rhetoric about limiting executive compensation made an impression. I am surprised though that the banks have been allowed to return the money. According to the New York Times, the bank executives should give thanks to someone in Congress that slipped in a rule change to TARP.