Big banks were the scourge of the economy not too long ago (financial crisis news). The massive bailout programs generated a lot of anger, much of which was justified (bailout news). These were the banks, after all, that posed systemic threats. But the biggest recipients have moved quickly to repay their TARP obligations, and the in some cases the government has made money on their shotgun investment.

Smaller banks, however, are struggling with TARP repayment. The Washington Post notes that hundreds of community banks have yet to return their bailouts. What's worse, more than 10 percent of the 700 banks that got federal bailouts and are still holding the funds could not even make the required quarterly dividend payment in February.

So have small banks gotten a pass? There's little doubt that some small banks were guilty of some shocking lapses in risk management. The ones in the most trouble allowed real estate bets to dominate their lending portfolio. The collective repercussions are certainly being felt economically. 

For more:
- here's the Washington Post article

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