Will the White House and Treasury Let the Big Banks Repay TARP Money?

NRO ^ | April 07, 2009 | Larry Kudlow

[Scanian]

Do Pres. Obama and Treasury man Geithner want to control the banks, just as they have taken over GM? Will the government assert political direction of the financial system in place of market forces, or in place of the rule of law as enforced by bankruptcy judges?

These hot topics have been discussed in a recent Politico story, a Wall Street Journal op-ed by my friend Stuart Varney, and an IBD editorial called “Federal Takeover.” Much of the discussion centers on bank paybacks of TARP money. In particular, banks in Louisiana, New York, Indiana, and California (four in all) have offered to pay back $340 million to Uncle Sam. IBD speculates that the Treasury declined to accept these payments.

Melissa Francis and I discussed this today on CNBC, and almost immediately the Treasury Department called one of my producers and e-mailed a quarterly update of all TARP payments made by the Treasury that include capital-repayment details. It turns out that the Treasury has in fact accepted TARP repayment: The Bank of Marin Bancorp in California paid down $28 million, Old National Bancorp in Evansville, Ind., paid back all $100 million, Signature Bank in New York repaid $120 million, and Iberiabank Corp. in Lafayette, La., paid back $90 million.

So we know the Treasury is accepting payment from these smaller regional banks. However, we do not know if the White House or the Treasury will accept repayment of TARP money by the nation’s biggest banks.

In a speech today, Goldman Sachs CEO Lloyd Blankfein once again indicated his desire to quickly pay back TARP. Jamie Dimon of JPMorgan has indicated a similar desire, as has BofA CEO Ken Lewis. But the Politico story implies that Obama does not want the big banks to pay down TARP, and that he is

[UCANSEE2]

Oh yes, the Treasury will accept the banks paying back the loans.

However, the Obama administration giving up ‘control’ of the banks is another story.

[PSYCHO-FREEP]

Now that this new Government Oligarchy has taken over the financial system, like the American Auto industry, they will not stop there. As they indicated a week ago, they will take control of all American business, pay scales, manufacturing practices and management directions.

[RikaStrom]

per yesterday

[BuffaloJack]

The federal government cannot refuse to accept repayment.
If they do, the federal coinage laws from a half century ago, and still in effect, state that refusal means forgiving the loan.

[mmichaels1970]

Now that this new Government Oligarchy has taken over the financial system, like the American Auto industry, they will not stop there.



Wiki definition of Facism.

Fascists opposed laissez-faire economic policies dominant in the era prior to the Great Depression.[120] After the Great Depression began, many people from across the political spectrum blamed laissez-faire capitalism for the Great Depression, and fascists promoted their ideology as a "third way" between capitalism and communism.[121] Fascists declared their opposition to finance capitalism, interest charging, and profiteering.[122] Nazis and other anti-Semitic fascists, considered finance capitalism a "parasitic" "Jewish conspiracy".[123] Fascist governments nationalized some key industries, managed their currencies and made some massive state investments.[citation needed] Fascist governments introduced price controls, wage controls and other types of economic interventionist measures.[124]

[nicola_tesla]

Of course the big banks can only “afford” to repay TARP because they got behind-the-scenes payouts from the 176B that went to AIG.

Let’s have that back too if they want to be free of the Feds.

[Sloth]

Millions for tribute, but not one cent for freedom!

[sport]

Oh the banks will payit back. Then most of the money will end up where the original money went, into the emocrat Party treasury then to ACORN.

[mtrott]

Yes, and also, it says right on a US dollar bill that it is legal tender and must be accepted for payment of debts. All they have to do is just send the money, and the debt is paid. What are they going to then do? Send it back to the bank?

[radiohead]

<The federal government cannot refuse to accept repayment.

I saw Judge Napolitano talking on FOX business about this. He was at a dinner w/a banking friend of, I think, a top 20 bank. The bank didn’t want to take TARP funds but was threatened with audits and bad press just for being audited that they took the money. The banker wanted to give the money right back, with interest and the government wouldn’t take it.

This whole set up stinks to high heaven.