Smarty_Pants

How Banks Need to Mollify the Public Sector

Duh!

Gub'mint money ALWAYS comes with strings attached.

Now that they have a 'stake' in the banks' successes, the gub'mint won't hesitate to tell the banks how to run their businesses, whether those directives are economically sound or politically acceptable (usually not both). Raising fees is a resonable response to falling earnings but not a politically acceptable one. Political litmus tests will only further hurt bank recovery attempts.

In essence, the gub'mint is now "running" the banks as it will hold a defacto veto over any policy changes the banks make.

If my bank was accepting gub'mint money I'd find a new bank.