An increasing number of banks and Wall Street firms that took bailout funds from the government under the TARP program want to give the money bank. One problem – the government won't let them. I'm not kidding.
"It should be called 'TRAP,' not TARP," said Brian Garrett, chief executive of Bank of the Bay in San Francisco, who is trying to return bailout funding. "Giving it back is harder than getting it."
Question – If the companies want to give the money back, did they really need the money in the first place ???
These companies say the burdens government is imposing on them harm their capacity for growth, and also sends their top financial talent to firms that aren't suffering under the government's TARP restrictions. In other words, the non-TARP receivers can still operate under the rules of the free market. TARP babies cannot.
In related news, House Financial Services Committee head Barney Frank (D-MA) has approved the introduction of the Pay For Performance Act Of 2009, that will allow the government to control the pay of ALL employees of companies that receive government assistance. As you may remember, back in february, the liar extraordinaire Frank, one of the prime enablers of the financial crisis, was longing to restrict the compensation of all financial companies, not just TARP receipients.
Fedzilla marches on, at warp speed.
{ 17 comments… read them below or add one }
Why did they take the money in the first place?
I realize that we should all feel sorry for Big Banking, you know, for collapsing world economies. Big Banking, surely, is the victim here. Poor, poor multi-millionaire bankers…..how will they manage?
Any private corporation seeking bailout funds from government should absolutely have compensation guidelines. How would it make sense any other way?
"These companies say the burdens government is imposing on them harm their capacity for growth,"
They should have thought about that before they went on their all-in gambling binge. No sympathy from me. None.
Again blaming it on the bankers when it was communists like Frank, Dodd, Soros, Reid and Pelosi that caused this whole thing. The more I look into this Bush was too stupid to see what was happening. This whole thing was planned and Obama is just a mouthpiece for what is really behind the scenes. This is way bigger that Watergate and the moveon.org/ACORN controlled media are looking right past it.
Rev, please show me where the Bank of the Bay collapsed world economies? (World economies? I didn't realize intergalactic banking was possible. Maybe its only in your fantasy land.)
Did you even read the post?
I'll summarize since reading is not your strongsuit: The bank is TRYING TO GIVE BACK THE MONEY TO THE GOVERNMENT and the government is not letting them do so.
Why would anyone oppose a bank paying back the government?
Is it because the TARP program wasn't to save banks but to take them over and nationalize them? That's what it sounds like Barney Frank (D – Hooker Client) is trying to do.
I guess it would be to difficult to expect you to get the facts before spouting your ignorance.
Thanks, Roy. You saved me from having to reply to the Rev's off-topic ranting.
Speaking of compensation guidelines, Congress voted itself a pay raise, and the federal government issued over $9 million in employee bonuses in 2008, most of which came in the 4th quarter as the economy collapsed.
When are we going to start to pay Congress based on it's performance ? Congress is driving the country into the ditch and getting rich while doing it. Why don't we regulate THAT ? Why don't we demand that Barney Frank be fired for his incompetence, instead of rewarding him for it ? Where is THAT investigation ?
And Reverend, nobody is suggesting sympathy for the banks. I don't even know where you got that idea. Certainly not from me. I am, however, suggesting a little sympathy for the American taxpayer, because the federal government has NONE.
I have to agree with averagejoe in believing that there may well be a huge conspiracy aimed at getting control of the monetary system from the ground up. I guess that may be some of the Obama trickle up theory so many Dems talk about.
TARP was well planned if there is an intent to get government control over financial institutions more complete than ever before.
Ah yes, TRAP may well be a better acronym for that law.
Let me see if I understand the thought processes reflected in the thread.
Democrats are slyly trying to nationalize the financial industry because their real goal is to socialize all of America's economy. A conspiracy.
Is that it?
So, the many details of how the financial industry actually CREATED the current economic collapse…you know, through unregulated greed and a certain amount of fraud…..gambling away America's future…..has nothing to do with why the feds are doing what they're doing?
Now I'm sure someone will correct me, if I'm mistaken…..but if some big banks want to give money back now….who FORCED them to take it in the first place?
And….giving the money back wouldn't have anything to do with furture compensation limits….would it?
Sure, Roy….Democrats want to nationalize the big banks….and that's why they're doing everything they can to save them…rather than take them over.
Silly.
Come on Rev, Bahney Fwank and Christopher Dodd aren't doing what they have been doing for years for fun, are they? I think not.
If a bank wants to give the money back to the Fed why aren't they allowed to do so? There must be some reason for that kind of thing. Maybe it is like if a man finances a car for 6 years and tries to pay for it after two years. Finance companies and big banks say ok but you have to pay us the whole amount of interest you owed us before. In my little farm community bank they take what you owe and give the money to somebody else to pay the interest on. That is my kind of finance company.
This old crap of not taking that money back so they can appoint one of their boys to the bank board is Spendocrat crap to me.
Spendocrat is a term I picked up from a sign at one of those tea parties in San Diego. Smart people go to those things.
Rev asks, " if some big banks want to give money back now….who FORCED them to take it in the first place?"
Nobody forced them (other than in a few cases). But you're missing the point of my post. Why can't the banks GIVE THE TAXPAYERS THEIR MONEY BACK if they want to ? The government is STOPPING THEM.
Am I speaking Chinese here, or what ?
I guess you must be speaking Chinese, King. As far as Rev is concerned it is Chinese, anyway.
My question still remains….why did they take money in the first place?
No other discussion can be had….if that question is not answered first.
Answering that question will put King's post in, you know, perspective.
I guess I am speaking Chinese, because the Rev refuses to answer the question.
Since I'm very un-Rev-like, I answer his question anyway.
The banks took the TARP money because it was offered to them. The end.
And why, pray tell, was it offered to them? Were they being rewarded for such a great job….you know, a performance bonus?
This is like pulling teeth.
It certainly is like pulling teeth. Why don't you just make your point instead of playing 20 questions with me ?
But I'll play along with your tedious game one more time, being the gracious person that I am.
The banks were offered the bailout money to (according to the government) recapitalize the banks, get them liquid, and get them lending again.
And now I expect you to actually address the SUBJECT of my post, and tell me why the banks shouldn't be allowed to return the bailout money if they want to.
I think I know what he's getting at King.
But first, why does my bank always have at least two of five drive thru lanes closed on Friday afternoons when they know it will be busy?
I think I know what he's getting at too. I just wish he'd get to it.
The bank doesn't have enough lanes open for the same reason the grocery store never has enough checkout aisles open on saturday morning – the failed policies of George W. Bush. Congress should be addressing this issue soon, right after they figure out how the NCAA BCS football playoff system should work.