Posted on 06/17/2009 2:05:23 PM PDT by Toddsterpatriot
Paying back that TARP, PING!
I bet 0bama never thought it would be paid back, either. he was hoping.
PLEASE! Most of these are the banks that didn’t want the damn money to begin with but were “pressured” under threat to take it....or ELSE! I KNOW that Northern Trust has wanted to give it back from the moment it was forced on them.
So what is the government going to do with the money? I understand it will be a revolving fund so that the USG [read Obama] can use the money as a slush fund to carry our their other “reforms.”
I love the spin in the very first line - as if restrictions on executive pay was the only reason these institutions wanted the government thugs out of their offices...
But if you told Freepers that last Fall you had mud thrown at you.
Slim to none, and Slim just left town.
Check out the reason that "some" banks are paying it back. And let's not forget Obama's buying spree of GM and Chrysler with TARP money. That ain't getting paid back.
But I was not one of the Freepers who said it would not be paid back, but I still don't see it all being paid back. And the reasons are obvious why it is being paid back by a few banks.
$66 billion paid back; at least $634 billion to go. So far, a not impressive 10% recovery. The financial institutions and the Feds have better hope for a quick economic recovery if there is any chance of a greater payback. Given the likelihood of more taxes and greater regulations and the inflationary effects of trillion dollar deficits, the normal recovery from a recession will be thwarted, just as the New Deal legislation retarded the recovery from the 1929 crash. If commercial real estate suffers the same degree of downturn that residential real estate and the derivatives market have, then the banks and insurance companies will be approaching the Feds hat in hand once more.
Yeah, that money is g-o-n-e, gone!
LOL!
The RTC at least had real estate to liquidate. Even if overvalued, there was still a market value to the underlying properties. The TARP assets are toxic waste, junk mortgage derivatives and other exotic instruments lacking any market.
You are incorrect! The TARP money (at least in regards to financial companies) bought preferred stock yielding 5% plus warrants. No derivatives or exotic instruments as far as the eye can see.
The financial institutions effectively have had their liabilities guaranteed by the Feds plus a large infusion of new capital funds. Even the incompetent managers of these institutions, who basically wrecked them through gross mismanagement, can make some money under such circumstances. A 10% recovery of principal over a six month period is not enough to justify the TARP bailout.
Is it the responsibility of the US Taxpayer to take on such risk?
BTW where did the AIG bailout money go?
That's not the justification for TARP. And let's not pretend that 10% is the only recovery.
The auto money is lost and AIG looks kinda shaky, but the rest of the money will be recovered with interest.
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