Economics for One

Archive for May, 2010

Rescued Banks Continue to Behave Irresponsibly

study by USA Today and the American University shows a shocking, but unsurprising result of the bank bailouts:

“Banks that received federal assistance during the financial crisis reduced lending more aggressively and gave bigger pay raises to employees than institutions that didn’t get aid.”

Using federal bank data, they compared 940 banks in the Troubled Asset Relief Program (TARP) and 7,400 banks outside it.  That’s a pretty thorough study.

Here are some of their published findings:
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