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Loan Program's Scarlet Letter ( Government will own only weak companies )
Wall Street Journal ^
| APRIL 30, 2009
| PETER EAVIS * HEARD ON THE STREET *
Posted on 04/30/2009 8:51:41 AM PDT by Ernest_at_the_Beach
As strong lenders move to shrug off taxpayer assistance, what happens to the financial firms that are left relying on government help?
So far, the Treasury has tried to avoid actions that would clearly label institutions as either weak or strong.
For instance, in the first round of Troubled Asset Relief Program investments, J.P. Morgan Chase got the same size preferred-equity injection as Citigroup, which was clearly ailing at the time.
And earlier this month, Treasury Secretary Timothy Geithner said it might be better for the economy and the financial system if some banks didn't pay their TARP investments back before others.
But there is one support program where it is hard to avoid such distinctions -- the Temporary Liquidity Guarantee Program, which allows financial firms to issue debt with a government guarantee. But there is no government obligation to issue under this.
(Excerpt) Read more at online.wsj.com ...
TOPICS: Business/Economy; Government
KEYWORDS: economy; obama; tarp; tlgp
To: All
********************************EXCERPT*********************************
By at least one yardstick, GE Capital is already more reliant on TLGP than Bank of America. The $37.6 billion of TLGP debt it has issued is equivalent to 6% of assets, while Bank of America's $44 billion is only 2% of assets.
To: Ernest_at_the_Beach
This is the crux of the scam. You take your over leveraged, poorly managed company and sell it to the Government. Ten, they get to lay everyone off and stiff the creditors. Heh, heh, heh.
3
posted on
04/30/2009 8:55:19 AM PDT
by
April Lexington
(Study the constitution so you know what they are taking away!)
To: Ernest_at_the_Beach
We need to boycott banks and companies that are owned by the Govt. No more GM or Chrysler vehicles.
4
posted on
04/30/2009 8:56:15 AM PDT
by
Oldexpat
To: Ernest_at_the_Beach
Does not mean anything if you don't know what the federal reserve has advanced.
5
posted on
04/30/2009 8:59:47 AM PDT
by
org.whodat
(Auto unions bad: Machinists union good=Hypocrisy)
To: April Lexington; St. Louis Conservative
To: org.whodat
The Fed is much less interested in political control...so to speak...
To: Ernest_at_the_Beach
You left out the question marks???????
I thought actions of the fed were open to the public, I was wrong!!!
8
posted on
04/30/2009 9:13:36 AM PDT
by
org.whodat
(Auto unions bad: Machinists union good=Hypocrisy)
To: April Lexington; St. Louis Conservative; org.whodat; SierraWasp; BOBTHENAILER; Grampa Dave; ...
To: Ernest_at_the_Beach
"And earlier this month, Treasury Secretary Timothy Geithner said it might be better for the economy and the financial system if some banks didn't pay their TARP investments back before others."
And this guy is supposed to be heading the treasury department?
10
posted on
04/30/2009 4:44:39 PM PDT
by
Marine_Uncle
(I still believe Duncan Hunter would have been the best solution... during this interim in time....)
To: Ernest_at_the_Beach; AdmSmith; Berosus; Convert from ECUSA; dervish; Fred Nerks; george76; ...
11
posted on
04/30/2009 4:59:07 PM PDT
by
SunkenCiv
(https://secure.freerepublic.com/donate/____________________ Profile updated Monday, January 12, 2009)
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