Unusual to see such candor. I wonder how he is going to be punished by the DNC leadership...
Two questions: Where did all the money go? Why are there not a whole lot of people in jail?
“the possibility such a move would more urgently motivate banks having taken TARP funds to repay them faster”
that’s bull. banks were threatened into taking the money. they would no doubt be threatened into not repaying also.
For all the talk about an IMPERIAL presidency during Bush’s tenure, you ain’t seen nothing yet.
The Obama nexus (which has the combined business experience of 0 years), has managed to impose imperial control over banks, auto companies, insurance companies, etc.
Yeah, I know that I am beating a dead horse. But I am not totally convinced that the horse is dead, so I will keep beating it until it's rotten, stinking carcass has been removed not only from the halls of the United States Congress, but from American (and South Carolina) politics forever.
Congressman Weiner should read section 6 of the sales purchase agreement for the preferred shares:
Section 6. Conversion. Holders of Designated Preferred Stock shares shall have no right to exchange or convert such shares into any other securities.
I have checked both the Edgar filings for Bank of America and for Wells Fargo, and the language is identical. The terms of the preferred sale are clear: these shares are not convertible to any other type of security, including common.
Nor is there is an attached put option; the only way that these perpetual instruments can be turned into cash is at the option of Bank of America or Wells Fargo via the redemption features of the agreement. There is no provision in the agreement for the government to force these shares to be redeemed.
Links for these Edgar filings for Bank of America; the relevant document is http://idea.sec.gov/Archives/edgar/data/70858/000119312508220360/dex31.htm; the entire filing for this transaction can be found at http://idea.sec.gov/Archives/edgar/data/70858/000119312508220360/0001193125-08-220360-index.idea.htm.
Links for these Edgar filings for Wells Fargo; the relevant document is http://idea.sec.gov/Archives/edgar/data/72971/000095012308013950/y72262exv4w1.htm; the entire filing for this transaction can be found at http://idea.sec.gov/Archives/edgar/data/72971/000095012308013950/0000950123-08-013950-index.idea.htm.
There is a related issue; as a part of this transaction, both companies also sold a warrant to directly purchase common stock from each company. However, the exercise price is $30.79 per share for Bank of America shares and BAC is currently around $8-$9 per share, so it would make no economic sense for the government to buy shares from Bank of America at $30.79 per share. The exercise price is $34.01 per share in the Wells Fargo warrant, and WFC is currently around $18-$19 per share, and again, it would make little economic sense for the government to exercise this warrant.
Such purchases of common under these warrants would put a relatively small of amount of capital into the companies --- full exercise of the warrants by the government would bring each bank around $3 billion, much less than the $25 billion raised by the sale of the preferred.
Saw a very interesting take as to why Tiny Tim is refusing the pay back of TARP monies from some banks that want to be free of it. Banks that could pay back the money would expose the weaker banks that could not and that these banks would go under. So in essence what they are trying to prevent is exactly what would have happened if they had done nothing and saved the taxpayer billions. Brilliant.
Thank you George W. Bush for Nationalizing our banks! I guess that’s “compassionate conservatism” in action!
I heard yesterday that the Fed.gov is once again promoting SubPrime Crime! No money down, no credit check, interest-only loans for the first 10 years to minorities, etc. Anyone able to confirm this?
banking giant Goldman Sachs announced Monday that it is ready and eager to repay the $10 billion in TARP funding it received this past winter... J.P. Morgan Chase & Co. has said it too wants to repay it's TARP loan. The Journal reported that other banks have expressed interest in repaying taxpayer money quickly in order to get out from under government regulations they claim are onerous and subject to unpredictable changes... Weiner said the federal government faces a conundrum: it wants the taxpayer funds repaid, but it doesn't want to relinquish control of banks...
Weiner is dating Huma Abedin, an aide to Secretary of State Hillary Clinton during Clinton's 2008 push for the democratic presidential primary nomination.
We’re on the road to fascism.