BofA, Citi risk getting left behind by healthy rivals
June 12, 2009
By MoneyAisle
According to Reuters, Bank of America and Citigroup are at risk of falling behind their bank competitors.
“Rivals including JPMorgan Chase & Co and Goldman Sachs Group Inc are getting ready to repay the funds they borrowed under the U.S. government’s Trouble Asset Relief Program. But Bank of America and Citigroup, which each received $45 billion in TARP money after two rounds of government funding, are not seen leaving that program soon.”
By not repaying TARP money, banks must comply with government limitations on compensations for senior executives. According to recruiters, this could mean that Bank of America and Citi could be at a disadvantage when it comes to retaining talented employees.