TARP This: Paulson's Bailout Plan Riddled With Deception | CommonDreams.org

"A New York Times report from London explained:

'Some analysts said the idea that recapitalizing banks would repair the lending market was flawed from the beginning because it was contradictory. On the one hand, the policy was meant to make banks reduce risk. On the other, it pressured them to lend more which meant taking more risks.'

So instead they diverted some of the money to satisfy their internal needs. An Associated Press investigation found: 'Banks that are getting taxpayer bailouts awarded their top executives nearly $1.6 billion in salaries, bonuses, and other benefits last year.' Many other banks would not disclose what they did with the money. Many of them have tightened credit, rather than loosened it." (Emphasis Mine.)