The shotgun marriage between banks and government appears to be having some unintended consequences. While some firms, Goldman in particular, have talked about returning bailout cash, Washington has stalled such attempts saying it's not ready to get its money back. Weird.
Experiences financiers are now seeing today as a great time to jump ship. Punitive tax rates on already-distributed bonuses, further regulatory scrutiny, and a more risk averse balance sheet must have an effect on the most experienced bankers willingness to go to work in the morning.
Goldman offers a great example. Recently, Jon Winkleried, one of the top-3 at GS, decided to retire. Byron Trott, the rare banker (if not the only) to receive praise from Warren Buffett, is leaving to start his own merchant banking firm. And the co-heads of Global Alpha, Goldman's flagship hedge fund, are retiring to pursue other interests.
They'll be glad to be away from TARP.
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