As TARP expiration looms, some banks can't let go

The government's $700 billion financial bailout officially ends Monday, costing far less than expected and having largely achieved its goal of propping up the financial sector. But some banks are having a hard time letting go.

For months, financial institutions across the U.S. fought to extricate themselves from the much-maligned Troubled Asset Relief Program, which was viewed as a liability for banks because of pay restrictions and the potential for government meddling.

Yet with Monday's TARP expiration looming, more than 600 banks are sitting on about $65 billion in government bailout funds. The situation is frustrating federal officials who believe some larger institutions can repay the government but have chosen not to because it would require them to raise additional capital and weaken existing shareholders, according to government officials.

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