Thursday, February 5, 2009

Being Tarped

Wall Street firms want to repay the TARP funds so they can manage their firms effectively.

Bankers are leaving firms that have received TARP funds for boutiques or foreign banks, where government-imposed restrictions on pay and business activities aren't relevant.

So I propose a new word, "tarped", defined as:

1. (specifically) having an important investor demand you pursue value destructive activities, such as making bad loans for the sake of lending or capping compensation so your best performers leave.

2. (generally) being screwed, from a financial point of view

3 comments: