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Citigroup says it and the market are now healthy enough to raise the $20 billion in capital needed to escape the TARP program’s regulations. Citi is the last Wall Street giant to pay back TARP funds.

Though it faced talks of nationalization earlier this year, taxpayers now will be making $14 billion as the bank repays its $45 billion loan.  

The U.S. government currently owns 34 percent of the company. Its decision to allow the move to happen has the media buzzing about what it means for the health of the economy.

We’re looking at perspectives from The Wall Street Journal, FOX Business, Reuters, CBS, and others.

Reuters contrasts Timothy Geithner with fund manager Dick Bove on how the economy should react.

“It’s a very good thing for the country that private investors are willing to come in and in effect take the government out of those positions.  But Bove says it may not be the best business decision for Citi.  It doesn’t improve their ability to do business, it doesn’t change their earnings by very much, and it would tremendously dilute existing shareholders.”

The Wall Street Journal reports Citigroup might have felt pressured to pay back TARP funds after Bank of America did so last week.

"One motivation: To erase the stigma that has dogged the large bank since it took the government funds. 'On that day, people will stop writing that Citi is a troubled banks with a $45 billion bailout package,' [Citigroup Chief Executive Vikram Pandit] said."

FOX Business reporter Elizabeth MacDonald agrees, saying the move helps Citi avoid the government pay czar and keep talented employees.

“This a company that has been really battered in the credit town. So the debate on Wall Street is should they be paying TARP back right now? The fear for Citigroup, they’re doing it because of a brain drain. Other banks who have paid back TARP and they’ve been losing talent.”

On CBS’ 60 minutes, President Obama says this attitude behind paying back TARP is wrong.

“The only ones who are going to be paying out these fat bonuses are the ones that have now paid back that TARP money.  I think in some cases that was a motivation, which I think tells me that the people on Wall Street still don’t get it.”

On WYNC radio, economist Peter Morici calls Mr. Obama a hypocrite. He says letting Citigroup pay back TARP was not the plan. 

“I think you’ve got to start by changing the culture on Wall Street and you start that by removing some CEOs.  I don’t know why we’re letting them pay back the TARP money as was agreed to early this morning, when they caused this calamity and the original notion was to dismember Citigroup to basically cover its losses."

So what do you think about Citigroup’s decision and the government’s decision to let the company pay back TARP?

Writer: Allison Bennett

Producer: Ben Paul