Nine Banks Had No Choice But To Take TARP Funds

The chief executives of the country's nine largest banks had no choice but to accept capital infusions from the Treasury Department in October, government documents released Wednesday have confirmed.

Obtained and released by Judicial Watch, a nonpartisan educational foundation, the documents revealed "talking points" used by former Treasury Secretary Henry Paulson during the October 13 meeting between federal officials and the executives that stressed the investments would be required "in any circumstance," whether the banks found them appealing or not.

Paulson also told the bankers it would not be prudent to opt out of the program because doing so "would leave you vulnerable and exposed."

It's no secret that some of the banks had to be pressured to participate in the program, with several bank CEOs saying they had been strongly encouraged to take the funds. But the documents are the first proof of the government's insistence.

"These documents show our government exercising unrestrained power over the private sector," said Judicial Watch President Tom Fitton in a statement.

Paulson's spokeswoman Michele Davis, who was a top aide when Paulson was at Treasury, on Thursday said, "Secretary Paulson was not one to read talking points at meetings."

Treasury Secretary Timothy Geithner's office did not respond to requests for comment.