Repayment of TARP

The Troubled Asset Relief Program or what the US institutions call affectionately as TARP. Simply put, it is a system whereby the US treasury lends troubled banks some money to tide over this wicked crisis. It's not all so simple. Banks are under certain rules and regulations with regards to having TARP funds in their balance sheets. For example, they have to limit executives pay. Regulations as such make it difficult for the financial institution to attract talent or even to hold their existing talent. This is where I am sticking my head out. Banks are going to repay tarp in the next few weeks albeit mostly from issuing more shares. This will even the playing field and it is also a sign that these so called trouble institutions are not so troubled after all. I'm going to say that financial stocks are going to see a further rally due to the fact that TARP is going to be repaid.