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Welcome to Fairfax Underground, a project site designed to improve communication among residents of Fairfax County, VA. Feel free to post anything Northern Virginia residents would find interesting.
Banks Bailed Out by TARP Borrow Gov't $$ to Repay
Posted by:
WingNut
()
Date: June 22, 2011 09:03AM
What could go wrong?
http://articles.boston.com/2011-06-20/business/29680556_1_tarp-troubled-asset-relief-program-small-business-lending-fund
Hundreds of small banks that received US aid after the financial crisis appear to have found a creative way to repay the funds: obtain money from a different government program.
Most of the 627 banks that still hold money from the controversial Troubled Asset Relief Program, or TARP, have filed applications to roll the obligations into the government’s new Small Business Lending Fund, according to Treasury officials and the banks.
That includes at least two Massachusetts banks, Mercantile Capital Corp. in Boston and Central Co-operative Bank in Somerville.
TARP was widely tarred as a bailout for greedy banks, but the $30 billion small business lending program does not carry the same baggage. The new program would let many TARP recipients sharply reduce dividend payments to the government, while no longer facing strict restrictions on executive compensation.
http://articles.boston.com/2011-06-20/business/29680556_1_tarp-troubled-asset-relief-program-small-business-lending-fund
Hundreds of small banks that received US aid after the financial crisis appear to have found a creative way to repay the funds: obtain money from a different government program.
Most of the 627 banks that still hold money from the controversial Troubled Asset Relief Program, or TARP, have filed applications to roll the obligations into the government’s new Small Business Lending Fund, according to Treasury officials and the banks.
That includes at least two Massachusetts banks, Mercantile Capital Corp. in Boston and Central Co-operative Bank in Somerville.
TARP was widely tarred as a bailout for greedy banks, but the $30 billion small business lending program does not carry the same baggage. The new program would let many TARP recipients sharply reduce dividend payments to the government, while no longer facing strict restrictions on executive compensation.
idontlikebeingrightaboutshitlikethisbutiam
Edited 21 time(s). Last edit at 5/31/1967 05:57AM by WingNut.
Last edit at 11/30/2015 01:37PM Last edit at 5/14/2015 03:52PM Last edit at 1/28/2014 05:57AM Last edit at 11/29/2015 01:10PM Last edit at 3/14/2011 11:52PM Last edit at 7/20/2012 04:07AM
Last edit at 6/29/2013 11:18PM Last edit at 3/19/2011 01:02PM Last edit at 3/26/2012 09:07PM
Re: Banks Bailed Out by TARP Borrow Gov't $$ to Repay
Posted by:
Admiral Bernanke
()
Date: June 22, 2011 09:08AM
WingNut Wrote:
-------------------------------------------------------
> What could go wrong?
>
>
> http://articles.boston.com/2011-06-20/business/296
> 80556_1_tarp-troubled-asset-relief-program-small-b
> usiness-lending-fund
>
> Hundreds of small banks that received US aid after
> the financial crisis appear to have found a
> creative way to repay the funds: obtain money from
> a different government program.
>
> Most of the 627 banks that still hold money from
> the controversial Troubled Asset Relief Program,
> or TARP, have filed applications to roll the
> obligations into the government’s new Small
> Business Lending Fund, according to Treasury
> officials and the banks.
>
> That includes at least two Massachusetts banks,
> Mercantile Capital Corp. in Boston and Central
> Co-operative Bank in Somerville.
>
> TARP was widely tarred as a bailout for greedy
> banks, but the $30 billion small business lending
> program does not carry the same baggage. The new
> program would let many TARP recipients sharply
> reduce dividend payments to the government, while
> no longer facing strict restrictions on executive
> compensation.
>
Attachments:
-------------------------------------------------------
> What could go wrong?
>
>
> http://articles.boston.com/2011-06-20/business/296
> 80556_1_tarp-troubled-asset-relief-program-small-b
> usiness-lending-fund
>
> Hundreds of small banks that received US aid after
> the financial crisis appear to have found a
> creative way to repay the funds: obtain money from
> a different government program.
>
> Most of the 627 banks that still hold money from
> the controversial Troubled Asset Relief Program,
> or TARP, have filed applications to roll the
> obligations into the government’s new Small
> Business Lending Fund, according to Treasury
> officials and the banks.
>
> That includes at least two Massachusetts banks,
> Mercantile Capital Corp. in Boston and Central
> Co-operative Bank in Somerville.
>
> TARP was widely tarred as a bailout for greedy
> banks, but the $30 billion small business lending
> program does not carry the same baggage. The new
> program would let many TARP recipients sharply
> reduce dividend payments to the government, while
> no longer facing strict restrictions on executive
> compensation.
>
Attachments:
Re: Banks Bailed Out by TARP Borrow Gov't $$ to Repay
Posted by:
WingNut
()
Date: June 23, 2011 08:52AM
Classic example of our leveraged living.
All this amounts to is taking one credit card debt and transferring to another card with lower interest.
Except in this case- the lender is the US taxpayer and apparently there was little oversight as to whether these banks deserved to be saved.
People NEVER treat someone elses money with the same respect and frugality they will treat their own.
All this amounts to is taking one credit card debt and transferring to another card with lower interest.
Except in this case- the lender is the US taxpayer and apparently there was little oversight as to whether these banks deserved to be saved.
People NEVER treat someone elses money with the same respect and frugality they will treat their own.
idontlikebeingrightaboutshitlikethisbutiam
Edited 21 time(s). Last edit at 5/31/1967 05:57AM by WingNut.
Last edit at 11/30/2015 01:37PM Last edit at 5/14/2015 03:52PM Last edit at 1/28/2014 05:57AM Last edit at 11/29/2015 01:10PM Last edit at 3/14/2011 11:52PM Last edit at 7/20/2012 04:07AM
Last edit at 6/29/2013 11:18PM Last edit at 3/19/2011 01:02PM Last edit at 3/26/2012 09:07PM
Re: Banks Bailed Out by TARP Borrow Gov't $$ to Repay
Posted by:
Les
()
Date: June 23, 2011 09:33AM
2 years later, big banks and corps are still getting bailed out with QE1, QE2, etc. since they can issue preferred shares and bonds in the financial markets while the small companies have trouble getting credit from those same banks.