Obama Administration About to Say Which Banks Can Repay Bailout Cash

CNSNews ^ | June 9, 2009 | Stevenson Jacobs and Daniel Wagner

[ClassicLiberal]

The government is set to announce as early as Tuesday morning which of the country's biggest banks will be able to repay billions in federal bailout dollars in a decision that risks creating a two-tier banking system -- winners and losers.

Congress approved the $700 billion Troubled Asset Relief Program eight months ago as financial markets teetered on collapse. Almost ever since, banks have been eager to pay back bailout money and cut the federal strings that come with it.

Combined, the repayments could exceed $50 billion. Experts say that figure reflects a measure of stability that has returned to the banking system but caution that the crisis isn't over. Some worry the repayments could widen the gap between healthy and weak banks.

"We're going to find out who are the strongest kids on the block and who are not," said Bert Ely, a longtime banking analyst.

Banks started railing against the TARP almost immediately after they accepted the help. One CEO, Jamie Dimon of JPMorgan Chase & Co., called the money a "scarlet letter," referring to the public backlash and federal scrutiny that came with it.

Banks that are expected to get a green light to repay bailout funds include JPMorgan, Goldman Sachs Group Inc. and American Express Co. They would be free of federal rules ranging from caps on executive pay to restrictions on dividend payments.

But weaker banks such as Citigroup Inc. and Bank of America Corp. would remain tethered to the government and face a problem -- how to compete for business and top workers against rivals operating more freely.

[icwhatudo]

“Which banks can...”

Can???

As in “are able to” or “will be allowed to by their government overseers”

[Texas Fossil]

The important point is that the repayment of the Bail-Out money will be in funny money.

Another scam deal for his friends.

[pnh102]

Heh. Funny how when the banks were falling all over themselves to get this bailout money they never even considered having conditions that entailed paying it back to be removed from the bill, even though they pulled out all the stops to get the money in the first place.

Methinks that a lot of these banks thought this was going to be "free" money.

[DeaconRed]

Please Mr. Man, let me pay you back . . . . . .

[sloop]

guess the purpose was served - he can now control them without the banks owing him money - might as well take the money back and pass it to acorn

[twigs]

I think it was which ones would be allowed to pay it back. I heard something this morning about the rules behind rewritten and the bar (defining healthy banks) being raised. It may have been someone’s fear rather than a plan; I don’t know.

[hoosiermama]

Two groups: Those who paid to play and those who haven’t yet.

[Dubya-M-DeesWent2SyriaStupid!]

Let's see now... the man that runs Citi is Obama's wealthy arab bud, so Citi won't care if they are OWNED.

Obama is playing favorites mixing business and government. It can't have a good ending no matter what.

[counterpunch]

Banks started railing against the TARP almost immediately after they accepted the help. One CEO, Jamie Dimon of JPMorgan Chase & Co., called the money a "scarlet letter," referring to the public backlash and federal scrutiny that came with it.

They never should have accepted such a Faustian deal.
They brought it upon themselves.
The only question is if American business has learned the hard lessons German businesses learned when they entered into a similar pact in the 1930s.

[ridesthemiles]

IF I win the Lottery and decide to pay off mortgages for my neices and nephews, I WILL do such.

There is no such thing as a President interferring with a bank or other business repaying a LOAN when it has the opportunity to do so.

Does Big Ears think he hs going to tell these banks that even if they have the money to pay back the loans that Big Ears and his Oval Office and “transparent administration of crooks and liars’ is going to tell a bank they cannot repay a loan???

Here comes more work for the Supremes!!!

The Supremes could have avoided all the messes \which are coming down the road by questioning the birth certificate 10 months ago.

[Buckeye McFrog]

those which put Obama cronies in control of their borads?

[Dubya-M-DeesWent2SyriaStupid!]

They are: JPMorgan Chase, American Express, Goldman Sachs Group, U.S. Bancorp, Capital One Financial, Bank of New York Mellon, State Street and BB&T.

http://www.cnbc.com/id/31184354