There's been a whole lot of talk recently about banks paying back TARP funds as soon as possible, to basically get the government off their backs. In the case of Morgan Stanley, however, it does not appear that a quick repayment is forthcoming. Reuters reports that CEO John Mack does not think the time has come to repay the funds.

It would be hard to read anything into this, other than the fact that even the well-positioned banks are not in the clear as of yet. The stress tests are still on-going at a time when business conditions are likely to worsen. Meanwhile, the government may likely ask banks to hold onto the funds for a while longer. While the pay and other restrictions are making it hard to keep talent, the wisest move may be to just deal with it until the end of the crisis is near. As for Goldman Sachs, if any bank will repay soon, it will be Goldman.

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