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So the banks were 'forced' to take TARP funds.....(vanity).
5/14/09 | NA

Posted on 05/14/2009 2:58:19 PM PDT by DrBombbay

Im curious.Its seems like to Treasury put the screws to the CEOS of these 9 big banks.The question I have is what happens if the CEOs that didnt want the TARP money simply walked away.Then when the regulators come upon them telling theyre going to have to tkae,thay also say no thanks.

Can someone enlighten me to the sanctions/punishments this action might bring on the banks that defiantly declined?


TOPICS: Government
KEYWORDS: tarpsocialism

1 posted on 05/14/2009 2:58:19 PM PDT by DrBombbay
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To: DrBombbay

Did you realize that your screen name was changed to “Dr. Mumbai”?


2 posted on 05/14/2009 3:00:14 PM PDT by johniegrad
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To: DrBombbay
The bank could be placed on a “watch list”.

The bank might find it is being investigated under the “equal opportunity lending” laws.

The bank could find itself under investigation under the Community Development laws.

The bank could be subjected to endless audits.

If regulators decide to run a financial firm out of business, they can darn sure do so, in very short order.

3 posted on 05/14/2009 3:01:35 PM PDT by Kansas58
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To: DrBombbay

The threat was that the banks would face audits that would cost millions to comply, even if the banks were found innocent of any irregularities. The $$ and bad PR would have destroyed them. A very credible threat that amounts to extortion if it can be proven.


4 posted on 05/14/2009 3:04:43 PM PDT by Cyber Liberty (Pretending the Admin Moderator doesn't exist will result in suspension.)
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To: DrBombbay
Can someone enlighten me to the sanctions/punishments this action might bring on the banks that defiantly declined?

Chuck Schumer would add them to his "I killed a bank today" trophy case. A bank doesn't last long when elected officials and regulators start dropping hints that it unstable and unlikely to last the week. They could be completely stable but still be brought down by a run.

5 posted on 05/14/2009 3:10:57 PM PDT by KarlInOhio (No free man bows to a foreign king.)
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To: johniegrad

OK,
That was good.


6 posted on 05/14/2009 3:21:24 PM PDT by IrishCatholic (No local Communist or Socialist Party Chapter? Join the Democrats, it's the same thing!)
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To: DrBombbay

Actually, given that the banks were operating in multiple states, the Fed might have been in violation of its own RICO laws.


7 posted on 05/14/2009 3:22:45 PM PDT by OneWingedShark (Q: Why am I here? A: To do Justly, to love mercy, and to walk humbly with my God.)
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To: DrBombbay

As I reported here last fall, I have a connection in a bank whose CEO was called by Paulson and informed that he MUST take the TARP loan.

The CEO discussed Paulson’s demand with others at the bank, and then called Paulson back, and said, “Of course. We’d just LOVE to take it.”

There was really no choice, so might as well make the best of it.


8 posted on 05/14/2009 3:30:23 PM PDT by Cicero (Marcus Tullius)
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To: DrBombbay
The CEOs should have had a recording device or a wire, get Paulson on tape threatening them, then tell him to p#ss off.

No one had the guts to stand up to nothing more than a bureaucrat.

9 posted on 05/14/2009 3:37:55 PM PDT by DTogo (High time to bring back the Sons of Liberty !!)
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