Posted on 06/17/2009 10:13:53 AM PDT by ml/nj
With the wiring of nearly $10 billion to the United States Treasury, U.S. Bancorp and BB&T on Wednesday became the first large financial institutions to announce that they have repaid the government in full for the preferred shares it bought last fall under the federal bailout program.
U.S. Bancorp, based in Minneapolis, said Wednesday morning it redeemed $6.6 billion in preferred stock from the Treasury. BB&T, based in Winston Salem, N.C., said that it had bought back the preferred shares for $3.1 billion plus a final dividend payment of about $13.9 million.
Morgan Stanley and Goldman Sachs were also expected to return their federal aid on Wednesday, signaling that the nation’s top bankers are regaining their confidence after the financial crisis that shook Wall Street last fall.
BB&T, U.S. Bancorp, Goldman, Morgan Stanley and six other large financial firms won approval last week to repay the money they received under the Troubled Asset Relief Program, a move that would bring them close to cutting their financial lifeline from Washington.
Among the other banks cleared to exit the TARP were JPMorgan Chase, American Express and Bank of New York Mellon.
(Excerpt) Read more at dealbook.blogs.nytimes.com ...
We're talkin' FRAUD here folks.
Morgan Stanley repaid $25 BILLION (with a B) today. So where did an institution that needed $25 BILLION (with a B) a few months ago get the funds to repay this money today? Is it the newly resurgent economy? It sure doesn't seem like it to me.
As the article points out, Morgan Stanley isn't the only institution to have the good fortune to pay back the funds they took just a few months ago. (I started to type "mega funds" but that sort of understates it.)
This Zicam user smells a rat. I really do not know why or what the motivation of these finacial instutions was for creating the air of financial crisis that undid the Republican chances last fall, but it's pretty obvious, to me anyway, that that is just what they did.
ML/NJ
Along with that....has anyone noticed that all banks that accepted the bail out.........their stocks are in the tank and going down in value. I thought they were all doing well.
Don’t think that this reduces the TARP slush fund. It just tops it right back up. The Republicans on Capital Hill to pretend to be outraged by this “big surprise” have revealed themselves to be even bigger fools than they already are, or rank, incompetent political hacks.
I think banks are doing this because the Democrats have gone crazy in running these banks. In many respects, I applaud the Democrats for making these banks’ lives hell because it will discourage others from getting on the dole.
When the GOV collects these paybacks, where does the money go towards, bringing down the debt or to other great pork projects?
I am so impressed by these banks paying their debts back to us. I hope they all end up doing so. I was seriously afraid that none of them would and we would end up with the debt later on (or our grandchildren). The only worry I have about this is that the money goes directly to the debt that they borrowed the money from. We might get this economy back on track yet. At least paying back the debt if nothing else.
The list, ping
The money payed back will not go to the loans the government took out. They will just spend it on something else. Your grandchildren will still have to pay for it.
Where did they get the money from? Surely there has to be some kind of "legal" accounting available to see where this money came from. It sure couldn't have come from a booming economy.
And like RC2 points out, their stocks are in the tank and going down in value.
There's more than one ratt stinking up the place, there's a load of rotten fish buried somewhere as well.
Of course its fraud and illegal as hell. Obama does not have the authority to do what he did with the banks. I would look closely as AIG and Citibank; since they were created solely as Obamas or whoever controls them laundering facilities. Its like Valley Bank in Las Vegas. They are and always have been a mob bank.
I guess you do not understand the point of my post.
They never needed the money in the first place.
That is can be nearly the only reason why they are able to repay it now. This whole thing was a ruse to create an air of financial panic.
ML/NJ
This is good news and proves we didn't need the stimulus. TARP worked.
I didn’t read your post until after I read the article and posted my reply. I replied to the person who posted the article. After I read the article then I post...after that I read the posts. Most FREEPERS never read the article. I never understand why...
I'm not the one forgetting anything, Pal. See e.g. WSJ: At Morgan Stanley, Outlook Darkens(The sharks are circling closer ??) and many other keyword=morganstanley threads. "Zero," as you call him wasn't even President-elect, when the cited WSJ article was written.
ML/NJ
Another one who misses the point. Obama was not President when TARP was railroaded through Congress.
ML/NJ
Spare me. Are you really a FReeper?
We didn't need it, but it worked, so it was a good thing. I just have great difficulty following your logic(?) here.
What worked is that the government is now, extralegally, orders of magnitude more involved with these finacial institution (or the other way around).
ML/NJ
So what. He is continuing the abuse.
Oh, I see, you’re just a Bush hater. The fact that he did something that prevented a recession from becoming a depression is what you want smacked down. Got it.
That is the explanation behind why these banks froze loans for the better part of the last five months, not funding new home loans, small business loans, etc. The common refrain has been 'the banks aren't lending' - and this a huge component of why they have not been loaning.
Secondly, banks have been loaning amongst themselves, as they have always done - and they have been cutting back on expenses radically.
There's no 'rat' to smell here - other than the Rat in the 0val 0ffice.
Lastly, banks will still not be lending (at the rate that they were during the boom years) for some time yet. They are sitting on incoming interest and letting that build, so they can, at some point, resume lending... at a far more cautious level than they exhibited in the past, with federal pressure pushing idiotic 'anyone gets a loan' policies. The days of easy money are over - as they must be if banking is to be the stable and viable business it was in the past.
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