We don’t want to follow the rules so we are returning your money. If you can’t follow the rules of receiving a grant or loan, then you have to return the money.

Some banks are returning the TARP funds. Maybe they don’t want to play by the rules, maybe they really didn’t need the money or maybe they were just taking money because everyone else was.

Since the administration has changed. President Obama’s rules are different than the previous administration’s and may require some conditions for the corporations use of the funds. It is possible that the banks didn’t need the money but were crying wolf and then realized that by making sensible changes they could manage. If everyone was standing in line for something free – regardless of whether you needed it or not, you might want something free too.

It is uncertain what happened, but several banks are returning their TARP funds. Maybe they suddenly became frugal.