Strings Attached...

Banks that took bailout money are now finding out that the money came with "strings attached."  Financial institutions that are getting government bailout funds have been told to put off evictions and modify mortgages for distressed homeowners.  They must let shareholders vote on executive pay packages.  They must slash dividends, cancel employee training exercises, and withdraw job offers to foreign citizens.  

One of the biggest concerns of the banks is that the program lets Congress and the administration pile on new conditions at any time.

The demands to modify mortgages or forestall evictions are especially onerous because they could prompt some institutions to take steps that could lead to greater losses. 

Financial institutions are now being told to engage in politically motivated policies instead of policies that are designed to return them to sound financial footing. 

This approach, of course, is what brought about the Fannie Mae/Freddie Mac situation in the first place. The banks have dual objectives: trying to generate a profit and at the same time follow policies dictated by a liberal socialist administration with an agenda to micromanage the economy into socialism.

Japan went through something similar.  They propped up bad banks for years and their economy was sluggish during those years.  Things turned around when they realized the bad banks couldn't be propped up indefinitely and faced the pain of restructuring their entire banking industry. 

Looks like we're going to do the same thing.