TARP: A Deal The Banks Couldn't Refuse

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CNN business correspondent Christine Romans reports on the pressure the Treasury Department put on the banks.


According to Bloomberg, former Treasury Secretary Henry Paulson, describing nine U.S. banks as “central to any solution” of the credit crisis, told their leaders to take government aid or be forced to by regulators, according to a memo his staff prepared for a private meeting in October.


“If a capital infusion is not appealing, you should be aware that your regulator will require it in any circumstance,” Paulson’s one-page list of talking points for the session with the banks’ chief executive officers said.


“We don’t believe it is tenable to opt out because doing so would leave you vulnerable and exposed,” the memo said.

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