It's lonely at the back of the class. Now that Bank of America (BAC) has found a way to pay off its TARP obligations, Citigroup (C) is all alone among the universal-type banks still tethered to TARP. True, Wells Fargo (WFC) has yet to pay back its TARP funds, but it's a purer consumer bank. You might think this would prompt Citi to follow its large competitor and instill a sense of urgency to get out from under the government. But I just can't see it at this point.

Chris Whalen, editor of The Institutional Risk Analyst and known Citi bear, told the New York Times, "Citi needs to focus on solvency and asset sales. They shouldn't even worry about repaying TARP." Still, Bank of America's move probably caused some hand-wringing in the executive suites. This may move repayment higher as priority. But in the end, the government will have to agree. But if the credit and fund-raising climate continue to improve, we may see some movement in this direction--perhaps a partial payback and timetable. But the risks of a premature payback, for Bank of America as well, cannot be ignored. It's tough out there.  

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