One of the big chafing points regarding the TARP bailout was the hefty dividends that were required. No one denies that the government--and all taxpayers--has the right to exact fees for injecting bailout capital. Lots of banks would have failed otherwise. But paying these fees in the form of dividends is not always easy and we're seeing a rise in so-called deadbeat banks, those missing their TARP dividend payments.

The number of banks that failed to make at least one dividend payment has risen to 132, reports the Washington Post. These are nearly all community banks.

Beyond the deadbeats, seven banks have failed, wiping out the government's bailout investment. Some are faulting the government's selection process, arguing that the government bet on the wrong banks. Certainly, the duration of the slowdown has caused additional problems.

At some point, the rules allow for the federal government to start monitoring board meetings and to start making board changes. That's happening more and more.

But all in all, TARP can still be considered a success--thanks to the massive banks that were able to turn themselves around and get off the government dime. Unfortunately, the program hasn't been able to save every single bank.

For more:
- here's the article

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