Our Outlook for Bank Stocks
The pressure to repay TARP moves down to regional banks.
With the end of the year and Ken Lewis' retirement rapidly approaching, Bank of America's (BAC) CEO search seemed a little desperate. Compensation restrictions that are part of the government's TARP program, especially those rules put in place by Special Master (aka "Pay Czar") Kenneth Feinberg, were hampering the search. BofA's desire to get off of government support was surely increased by these factors, and after some quick negotiations and $20 billion from new shareholders, the firm was out of TARP.
Jaime Peters does not own shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.