Why allowing the Big Banks to repay Tarp was a mistake.

The Obama Administration has destroyed the main reason for TARP. The reason for the program was not to give support to failing banks, but to increase lending. The chart below show the increase in C&I lending at the major banks since the start of the crisis. But notice the impact of being allowed to repay the TARP! The SHARP decrease in C&I loans! This is a real predictable result: You decrease capital and political pressure on banks to make loans and low and behold you get a DECREASE in C&I loans. The Obama Administration will face lower economic growth because of their changes in the TARP program.