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Annaly Capital Management (NYSE:NLY) makes an interesting point about the TARP program and banks. Will the loan terms prove to be counter-productive and actually harm the banking sector's recovery? From Annaly's Q408 conference call:

I met with the CEO of one of the major banks last week and he congratulated me on running the third largest capitalized bank in New York.

And it was interesting from his viewpoint that both of us had avoided taking TARP money in some way shape or form but we are now benefiting in a parallel mode from all of the changes that were taking place at a regulatory level.

Those financial institutions they have to save too and ones that have taken the TARP money they have got to write pretty good dividend checks on the cumulative preferreds with the Treasury every quarter so that is going to drive into those earnings and may slow the pace of recovery in the financial system

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Source: Annaly Points Out Another TARP Anomaly