My blog post of yesterday was pretty spot on regarding the sentiment in NYC. Those who can will pay back the government capital injections; operate in an unregulated fashion; and recruit and retain the best and the brightest. Those who can’t will be run as government like agencies and perhaps lose some really good people to stronger banks and foreign concerns. The remaining big and healthy will get stronger. The weak will get weaker.
Time will tell how this will all shake out but the unintended consequences of new laws in times like these has already started.
This whole TARP thing is an embarrassment to BOTH Bush and Obama. It started out, not as a bailout for sick banks, but as a bump to get healthy banks lending again. Now many of the healthy banks who have done what the government wanted and taken the money are being treated as crooks and sleazeballs. And it isn’t just big banks. Chances are, your local community banker may have fallen for the government’s pitch too. And will now pay for it. What’s that old saying about the most dangerous words in the world being “I’m from the government and I’m here to help you?” Proven true again.
Ted. Please stop using the term “spot on.” Yes, it’s fashionable, but it so corny. Reminds me of Terry Thomas movies.