03/18/2010 05:12 am ET Updated May 25, 2011

TARP Has Changed Little On Wall Street: John Gapper

As banks rush out of Tarp to avoid second-guessing from Congress and restrictions on executive pay, little has changed on Wall Street. Bear Stearns and Lehman Brothers are gone but the banks that remain make money in the same old way.

As the FT reported on Wednesday, banks and hedge funds have made huge profits in distressed debt trading in the past year, aided by the Federal Reserve keeping short-term interest rates low. Meanwhile, the banks that turned out to be too big to be allowed to fail are bigger than ever.