Today, both Citigroup and Wells Fargo announced plans to repay their TARP funds. Their announcement comes shortly after Bank of America announced its plans to exit the bailout program. Apparently, December is the month for those banks remaining in the program to make their way out.
Could this move have anything to do with the approaching year-end?
Considering that all three have fiscal years ending December 31, 2009, the move is hardly surprising.123 By repaying their TARP funds during this fiscal year, all three can start 2010 free of government encumbrances on executive compensation and the additional oversight that came with the Troubled Asset Relief Program (which, by the way, never relieved [government speak for buying assets from the banks] any troubled assets, but instead infused capital into the banks to prevent their collapse).