TARP IS A TRAP, NO MATTER HOW YOU SPELL IT…

Posted on June 18, 2009. Filed under: News And Politics... |

 
Just look at the problems some governors, state legislators and companies had when they didn’t even request TARP money.  It was forced upon them anyway.  Then when some companies witnessed our government’s hidden agendas, they tried to give the money back, and they had problems.  The Supreme Court forced South Carolina Governor Mark Stanford to accept the stimulus money.  Sanford fought a very public battle over the money directed to South Carolina, sparring with the legislature over $700 million that was primarily intended to help the state’s education system.  When legislators passed a budget that required him to request the funding, he took them to court, but he lost as the South Carolina Supreme Court ruled in the legislature’s favor and ordered Sanford to ask for the money.
 
JPMorgan said it had returned $25 billion, with interest, to the government—money that the bank’s chief executive, Jamie Dimon, has said "it never needed in the first place".  Morgan Stanley and Goldman Sachs said in separate announcements that they had each repaid their $10 billion in federal aid, joining a parade of financial institutions making their exit from the TARP program.  By late Wednesday afternoon, all 10 banks allowed to exit Obama’s TARP program had said they had repaid the TARP money.  Among them, American Express returned $3.39 billion, Bank of New York Mellon $3 billion, Capital One Financial $3.57 billion, State Street $2 billion and Northern Trust $1.58 billion.  JPMorgan’s announcement was short, and it didn’t include any comment from the firm’s chief executive, Mr. Dimon, who has publicly referred to the TARP as a “scarlet letter” and criticized some of the strings that were attached to the program.
 
How is this democracy when our government is force-feeding TARP money, dictating who should get it?  Great power play from Obama, but all his power plays will have a destructive ending.  Unfortunately, it will probably be after the damage has been done.  This is only one instance where the stimulus is being forced into states where they don’t even want it, or even need it!  Now, little by little, our government " is allowing" dribbles of payback.  Some time ago, the government was refusing to accept the money back, dictating payback on their terms.  This is one way the government can put a choke-hold on state legislators.  They give out the money then dictate how they can run their states and/or their companies.  Seems to me our government is enjoying the power that the TARP money has supplied for them, sort of like a TARP umbrella.  To follow along the lines of hidden agendas within our government…If you rearrange the letters, TARP spells TRAP, which is exactly what these companies, governors and state legislators fell into by accepting it.  I still say that China should receive a good portion of that payback TARP money…
 
QueenBee
 
 
 
 

10 U.S. banks to repay U.S. bailout money

Last Updated: Wednesday, June 17, 2009 | 11:08 AM ET

CBS News

Ten of the largest banks in the United States on Wednesday plan to repay about $68 billion US they received in bailout money.

Two U.S. banking industry officials confirmed the move to The Associated Press. The officials spoke on condition of anonymity as not all the banks had made official announcements.

The banks repaying their Troubled Asset Relief Program (TARP) loans include JPMorgan Chase & Co., Goldman Sachs, American Express and Morgan Stanley.

Wednesday is the first day the banks can repay the funds to the U.S. government.

Goldman Sachs earlier confirmed it will repay the $10 billion government investment, while Morgan Stanley is expected to repay a similar amount.

All ten banks were approved last week to repay the money. Nine of the banks were subjected to the government’s recent "stress tests", which were meant to gauge their capital requirements to protect against losses if the U.S. economy continues to weaken.

Paying back the TARP money will free the financial institutions from some of the conditions imposed on them by the government, including limits on executive compensation. They also won’t have to pay the high dividends that were a condition of the bailout.

 

Advertisements

Make a Comment

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

Liked it here?
Why not try sites on the blogroll...

%d bloggers like this: