With 139 banks having failed to pay Troubled Asset Relief Program dividends, and almost 20 now having missed as many as six payments, the US Treasury announced at the end of 2010 that it would be appointing monitors to oversee high-risk banks, and might install directors on some of the banks’ boards.
The banks that have missed six or more Tarp dividend payments represent investments of about $1.3 billion. That’s not a small sum but analysts point out that given the success of Tarp, bad press about small banks that have struggled to make repayments is overblown. Dick Bove, financials analyst at Rochdale Securities, says that the negative sentiment surrounding Tarp should be counteracted. "For one, were it not for Tarp, there would be higher unemployment, and companies would have failed, and the financial system might have failed. And secondly, when all is said and done, if you look...
