As many as 10 banks are ready to repay TARP loans to the delight of the Obama administration, which using the news to justify its hurried push of the under-scrutinized TARP legislation and to underscore a recovering economy. It’s truly great news that these banks are back on their feet and are able to pay back nearly $70 billion, but the next logical question is: Where would that money go?
The administration wants to recycle that money to other banks in need, but the Republicans aren’t too fond of that idea. Instead, Republican lawmakers like Sen. John Thune (R-SD) and Rep. Jeb Hensarling (R-TX) wants to use that $70 billion to pay down the national debt, prevent the government from using it to buy more company shares, and to end the TARP program soon.
Democrats, of course, stand by the Obama administration’s decision. After all, they don’t think the $70 billion belongs to taxpayers, but rather just another pile of money for them to use and abuse.
