Here’s the deal. I’m all in favor of restrictions being associated with TARP money. Really I’d prefer there was no TARP money.... but if we’re gonna give it to them, then we ought to tell them how to use it.
Keep in mind that many of the banks did not want the money, were forced to take it, and not are not allowed to pay it back because the Fed/FDIC believe it would restrict the bank’s lending. So they’re stuck. And on top of that, the govt can now force them to do whatever they want.