Posted on 11/11/2016 8:23:35 PM PST by Lorianne
Eight-years after taxpayers rescued the U.S. financial system, some of the country's largest banks, including JPMorgan Chase and Wells Fargo, continue to receive billions in bailout money, according to government data.
Wells Fargo is eligible for up to $1.5 billion in bailout funds over the next seven years. JPMorgan and Bank of America could receive $1.1 billion and $964 million respectively.
The continuous flow of funds is a remnant of the $700 billion bailout effort, known as the Troubled Asset Relief Program or TARP, put in place during the financial crisis. Some of that money, about $28 billion, was carved out to help distressed homeowners by paying banks to lower their interest rates and monthly payments.
The program, the Home Affordable Modification Program, has undergone several revamps over the last few years and fallen short of helping the 3 million to 4 million homeowners the Obama administration initially hoped. But it continues to operate -- HAMP will accept its last homeowner application at the end of this year -- and big banks continue to be paid based on how many homeowners they help.
At least the money being paid to the banks is making it more likely that homeowners will qualify for help with their mortgages, said Alys Cohen, staff attorney for National Consumer Law Center. “To some extent, companies are being paid for what they should have been doing anyway,” said Cohen.
But the stream of cash for the big banks is worrisome to Office of the Special Inspector General for the Troubled Asset Relief Program, or SIGTARP, the chief watchdog of the financial crisis-era bailouts. Many of the banks have repeatedly broken the rules of the program, including kicking homeowners out unfairly or making it too difficult to apply for the help.
(Excerpt) Read more at washingtonpost.com ...
This is criminal. I have said it is criminal since the housing bubble burst. They reap the profits and the bosses get huge bonuses, but they put the losses and the free money train on the back of my children. The crisis was made far worse by a handful of people who lied for political reasons (Barney Frank) or for tens of millions in bonuses (Franklin Raines and Jamie Gorelick). They cooked the books and bribed people to give their instruments an A rating. Worked out well didn’t it?
Trump would do us all a favor if he ordered a full investigation of the crash and where the money went afterwards. We can never root out the corruption until there is a full accounting of how deep it runs. It is in our central bank, Wall Street, K Street, media, and throughout both parties in our government.
ping
“including JPMorgan Chase”
That right there is an outright lie used to get people angry at those evil evil banks.
For the record....
Chase (Dimon) was approached by the Obama administration during the financial crisis because they were one of the few if not only large bank to not put their eggs in the Mortgage securities. In fact Obama begged them to bail out and buy WaMu to save the economy. Being that Chase was the only bank solvent Dimon wanted assurances so he took money to protect the bank because he knew WaMu had bad paper and the company was going to pay for it.
He got WaMu on the cheap but had bailout funds UNTOUCHED sitting there in case WaMu took a dive and brought the company with it. In fact Chase was one of the first to wish to pay that money back but the admin refused to allow them to pay it off early because they had leverage on them in this way. The second they allowed them it was paid in full. Chase has BILLIONS sitting aside for crap like this. I hate when news media not only lies but tries to push a narrative that isn’t true. Chase isn’t taking Government money
Here is audio of a Bush speech just a few years prior to the housing collapse, with Bush demanding home loans for totally unqualified minorities.
https://www.youtube.com/watch?v=GkAtUq0OJ68
Read 4 the article is not truthful
And when you dig a little deeper, it's really just a strategy for propping up the value of the U.S. dollar ... because new money is created by the U.S. Federal Reserve every time a loan is extended. If the homeowner defaults and the bank forecloses on the property but can't sell it for enough to cover the outstanding loan, then the money has effectively vanished into thin air. Nobody wants to face the prospect of that kind of scenario unfolding.
Banks should have been broken up.
One of my hopes for President Trump is that we’ll start enforcing Anti-Trust Laws again.
I am not buying or selling the article either way. I am still very frustrated that there has never been a true accounting of what happened in the mortgage crisis that resulted in massive economic chaos, fraud, and a select few saddling my children with far more debt than they would have otherwise.
I am still angry that we created the GSE’s where they privatized profits and the elite collected tens of millions in bonuses on the basis of fudged numbers while my kids had to cover the losses.
I am still puzzling over how our nation allowed a few select companies to become so big (apparently) and so powerful that if they were to fail our nation would fail. That is a neat trick isn’t it?
I have many questions that I would love to see answered. There are many people who I would love to see called before congress to explain what happened. It was the largest economic loss in history yet they told us nothing about how it happened - only what would happen if my kids did not bail them out. They would not even account for the money to the American people! It resulted in a stimulus that did nothing to help the nation unless you were part of the elite. I would argue that it had more influence over the 2008 election than the email scandal had in 2016.
Doesn’t it seem odd that there was not more attention and analysis paid to what was one of the major events in our nations history? The first crisis of the world market that threatened the banking systems in other nations?
From where I am sitting, it looks like a scam. As far as Chase Bank goes, I had heard this before and I am not disputing it, but there are still several other entities that did. Doesn’t it trouble us that the government was telling banks what they had to do?
I just want to know the truth or whatever version we can arrive at that is closest.
Do you have any videos of Bush, his Treasury Sec. (Snow, was it?), and Greenspan warning us about the housing bubble and Fannie/Freddie, or did you simply not listen to them?
Anybody remember the Stimulus? That was the last official budget. Ever since then the congressrats have only passed a continuing resolution, which kept that stimulus spending going every year since. That’s where the doubling of the debt came from.
Completely agree and answers are long overdue
How about Sequestration?
The stimulus was crony politics at its worst. They said it was for infrastructure, but it looked more like a “for my donors” program to me.
The taxpayers were fully repaid, and the US Treasury made profits of over $70 billion.
And the "bailout money they continue to receive" is money going to homeowners to help them refinance, that's not a handout to the banks.
They didn't get "free money".
They repaid the loans, and the "back of your children" saw profits of over $70 billion.
Your children would not benefit if the banking system was allowed to fail
If I borrow $10,000 from Citibank to buy a car, why do you feel the Fed has to create new money?
Not necessarily every bank transaction, but in a fractional reserve banking system like ours most loans are cast with “created money” by definition.
I don’t want the banking system to fail. I don’t want the corruption that I believe took place from start to finish. The crisis was caused by a government driven bubble created when banks were told to make (eventually they did it enthusiastically) to make questionable loans. They originated the loans and then dumped them into the GSE’s who packaged them as security instruments that were given high ratings. The rating agencies then used very questionable numbers based on suspect data and it kept growing until it blew up.
People lied about the health of the system and security of the instruments.
All I want is an accurate accounting of what happened. We never got that. Did they cook the books? How could people have not seen the dangers far in advance of the crash? Were there bonuses for people involved that were directly tied to cooking the numbers?
It appears that way to me, but I don’t know that we will ever find the truth. That is all I want. A truthful accounting of what happened might help us to avoid another disaster like this. It might bring honesty and accountability back to our markets which is the responsibility of regulators and congress.
I am far more upset with those who were in charge of the GSE’s, congress, and the regulators than I am the banks. The banks were told what to do and they did it - much of that was the fault of government also.
As far as what ended up on my kids you and I will apparently have to disagree. The whole mess appeared to create a reason for the Fed to pump, the government to borrow, and politicians to expend funds like corruptocrats.
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