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Banking Giant Bank Of America Will Repay TARP

Posted by: RateAPY Bank Rates News
December 3rd, 2009

Banks are feeling restricted under US pay czar Kenneth Feinberg. Reducing compensation to upper management is amoung the issues causing banks to request deals with the government to repay TARP funds. Yesterday, Bank of America Chief Risk Officer Greg Curl succeeded: Bank of America will be allowed to repay $45 billion to the Treasury in the next few days. Curl is being considered to replace exiting CEO Ken Lewis at the end of the year.

The Treasury believes that banks moving in the direction of repaying TARP funds is a positive for the economy and should boost confidence. Bank of America shares are up, signaling that the market shares this belief. The Federal Reserve and the Treasury are both interested in removing liquidity from the economy before inflation becomes a concern. Interest rates will likely go up on money market accounts, savings accounts, and certificates of deposit in 2010.