First, the government forced banks, at figurative gun point, into accepting TARP funds.  Now the government says they can’t just pay the money back and be free of heavy-handed government meddling.

Strong banks will be allowed to repay federal bailout funds, but only if such a move passes a test to determine whether it is in the national economic interest, the Financial Times reported on Sunday, citing a senior U.S. administration official.

The report said banks that had plenty of capital and demonstrated an ability to raise fresh capital from the market should, in principle, be able to repay government funds.

But the judgment would be made in the context of the wider economic interest, the report said.

I can think of few things scarier than government bureaucrats purporting to determine what’s in the national economic interest.

American businesses take heed: don’t get in bed with government.