Banks receiving TARP funds have been beaten up--fairly or not--for lots of practices that seem untoward: Office renovations, corporate jet use, sports marketing deals and bonuses. So what to make of Bank of America's entry into the luxury hotel business? USA Today reports that the bank is set to open a new Ritz-Carlton in Charlotte. It will be the only luxury hotel in town and will be used extensively for business purposes. The hotel has been in development for four years, and no TARP funds were used.

Still, a few critics have emerged. The New York Times reports that the Comptroller of the Currency "had to approve of Bank of America's building of the luxury hotel because of rules that prohibit banks from direct development in real estate projects." In any case, it's quite likely that Bank of America will repay its TARP payments soon. I doubt this will amount to much. 

For more:
- here's the USA Today article
- here's the New York Times item

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