I will delete this question if it's not relevant.

I came across this link on banks that refused bailout money from TARP during the financial crisis in 2009.

I'm wondering why would a financial institution refuse the bailout money? What strings were attached (if any) that would make them do this? Is the link I read wrong and I'm a sucker who believed it?

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    I'm voting to close this question as off-topic because it is not about personal finance. Apr 10, 2019 at 23:36

1 Answer 1


Many banks refused the TARP money because their conservative lending standards resulted in low exposure to sub prime mortgages. They were well capitalized and therefore didn't need it. Other reasons were that that they didn't want regulators telling them how to structure dividends, place restrictions on how they compensate executives, make acquisitions or force them to make loans that might not be in their best interest.

JPMorgan Chase was one of the large banks that did not want the TARP money and tried to refuse it. They accepted it because they were asked to by the Treasury Secretary.

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