Skip to comments.2 Banks Exit TARP, With More to Follow
Posted on 06/17/2009 10:13:53 AM PDT by ml/nj
With the wiring of nearly $10 billion to the United States Treasury, U.S. Bancorp and BB&T on Wednesday became the first large financial institutions to announce that they have repaid the government in full for the preferred shares it bought last fall under the federal bailout program.
U.S. Bancorp, based in Minneapolis, said Wednesday morning it redeemed $6.6 billion in preferred stock from the Treasury. BB&T, based in Winston Salem, N.C., said that it had bought back the preferred shares for $3.1 billion plus a final dividend payment of about $13.9 million.
Morgan Stanley and Goldman Sachs were also expected to return their federal aid on Wednesday, signaling that the nations top bankers are regaining their confidence after the financial crisis that shook Wall Street last fall.
BB&T, U.S. Bancorp, Goldman, Morgan Stanley and six other large financial firms won approval last week to repay the money they received under the Troubled Asset Relief Program, a move that would bring them close to cutting their financial lifeline from Washington.
Among the other banks cleared to exit the TARP were JPMorgan Chase, American Express and Bank of New York Mellon.
(Excerpt) Read more at dealbook.blogs.nytimes.com ...
We're talkin' FRAUD here folks.
Morgan Stanley repaid $25 BILLION (with a B) today. So where did an institution that needed $25 BILLION (with a B) a few months ago get the funds to repay this money today? Is it the newly resurgent economy? It sure doesn't seem like it to me.
As the article points out, Morgan Stanley isn't the only institution to have the good fortune to pay back the funds they took just a few months ago. (I started to type "mega funds" but that sort of understates it.)
This Zicam user smells a rat. I really do not know why or what the motivation of these finacial instutions was for creating the air of financial crisis that undid the Republican chances last fall, but it's pretty obvious, to me anyway, that that is just what they did.
Along with that....has anyone noticed that all banks that accepted the bail out.........their stocks are in the tank and going down in value. I thought they were all doing well.
Don’t think that this reduces the TARP slush fund. It just tops it right back up. The Republicans on Capital Hill to pretend to be outraged by this “big surprise” have revealed themselves to be even bigger fools than they already are, or rank, incompetent political hacks.
I think banks are doing this because the Democrats have gone crazy in running these banks. In many respects, I applaud the Democrats for making these banks’ lives hell because it will discourage others from getting on the dole.
When the GOV collects these paybacks, where does the money go towards, bringing down the debt or to other great pork projects?
I am so impressed by these banks paying their debts back to us. I hope they all end up doing so. I was seriously afraid that none of them would and we would end up with the debt later on (or our grandchildren). The only worry I have about this is that the money goes directly to the debt that they borrowed the money from. We might get this economy back on track yet. At least paying back the debt if nothing else.
The list, ping
The money payed back will not go to the loans the government took out. They will just spend it on something else. Your grandchildren will still have to pay for it.
Where did they get the money from? Surely there has to be some kind of "legal" accounting available to see where this money came from. It sure couldn't have come from a booming economy.
And like RC2 points out, their stocks are in the tank and going down in value.
There's more than one ratt stinking up the place, there's a load of rotten fish buried somewhere as well.
Of course its fraud and illegal as hell. Obama does not have the authority to do what he did with the banks. I would look closely as AIG and Citibank; since they were created solely as Obamas or whoever controls them laundering facilities. Its like Valley Bank in Las Vegas. They are and always have been a mob bank.
I guess you do not understand the point of my post.
They never needed the money in the first place.
That is can be nearly the only reason why they are able to repay it now. This whole thing was a ruse to create an air of financial panic.
This is good news and proves we didn't need the stimulus. TARP worked.
I didn’t read your post until after I read the article and posted my reply. I replied to the person who posted the article. After I read the article then I post...after that I read the posts. Most FREEPERS never read the article. I never understand why...
I'm not the one forgetting anything, Pal. See e.g. WSJ: At Morgan Stanley, Outlook Darkens(The sharks are circling closer ??) and many other keyword=morganstanley threads. "Zero," as you call him wasn't even President-elect, when the cited WSJ article was written.
Another one who misses the point. Obama was not President when TARP was railroaded through Congress.
Spare me. Are you really a FReeper?
We didn't need it, but it worked, so it was a good thing. I just have great difficulty following your logic(?) here.
What worked is that the government is now, extralegally, orders of magnitude more involved with these finacial institution (or the other way around).
So what. He is continuing the abuse.
Oh, I see, you’re just a Bush hater. The fact that he did something that prevented a recession from becoming a depression is what you want smacked down. Got it.
That is the explanation behind why these banks froze loans for the better part of the last five months, not funding new home loans, small business loans, etc. The common refrain has been 'the banks aren't lending' - and this a huge component of why they have not been loaning.
Secondly, banks have been loaning amongst themselves, as they have always done - and they have been cutting back on expenses radically.
There's no 'rat' to smell here - other than the Rat in the 0val 0ffice.
Lastly, banks will still not be lending (at the rate that they were during the boom years) for some time yet. They are sitting on incoming interest and letting that build, so they can, at some point, resume lending... at a far more cautious level than they exhibited in the past, with federal pressure pushing idiotic 'anyone gets a loan' policies. The days of easy money are over - as they must be if banking is to be the stable and viable business it was in the past.
You see nothing. It's obvious that you have no clue regarding what I am suggesting here.
While I do not worship, nor ever have worshiped, the ground that Bush walks upon, characterizing me as a Bush hater is obscene.
This is about a fraud perpetrated by a gaggle of financial institutions and not about Bush or Obama, except that the latter benefited politically as a result.
Oh don't worry about that. there will be plenty of debt on our grandchildren with the other trillions Obama is spending, none of which is going to be paid back by anyone except us in interest payments on the national debt.
Because it is. Don't you see what they did?
And do you really think this money is going to be taken off the massive national debt Obama has racked up?
This money will eventually vanish, and he and his pals will have stolen a trillion dollars to finance his national brownshirt force.
Of course people like you would have blamed Bush no matter what he did.
You’re confusing TARP with the stimulus package.
Because government handouts cannot save the economy. Government spending of any kind is deleterious to the economy, and the kind that has been done in the past eight months is a fusion bomb.
The gangrenous leg is a good analogy; the sooner the failures get completed, the less damage will be done.
The TARP plan was a loan. And it’s getting paid back in record time...with interest.
It was fraud because the repayment shows there never was a need to "save the economy" (and I guess you wouldn't understand that even if there were a need, it still would be unconstitutional, i.e. illegal, for the Federal government to attempt meet that need).
As for your repeated attempt to divert this to a discussion about President Bush, give it up. This isn't about President Bush.
Some ot TARP is getting paid back, because they saw that it was in reality an attempt at nationalization.
Much of TARP will never be paid back; it went into failing companies that had no hope of recovery. Delaying the failure of those companies has harmed the economy.
And don’t forget that over half of the funds cannot be accounted for. (Interesting coincidence: Two Japanese men arrested attempting to cross into Switzerland from Italy carrying undeclared bonds with the same value as the missing TARP funds)
The people then who needed to be bailout were those who put their money into the banks, not the banks!
Banks have no money, they lend other people's money!
The Bush bailout was a disgrace and against all free market principles!
Those banks never needed the money in the first place but were forced to take it by the government.
So the entire 'sky is falling' nonsense that Bush and the nitwit Paulin, was simply smoke and mirrors.
And what is worse, is that the GOP Senate, went along with him instead of resisting it like the GOP House did.
It’s the profits they made from their dealings with AIG.
Who do you think AIG was paying? Phantoms?
What garbage. Cut it out. The bonds were from the Kennedy era. Isn’t there a UFO thread you can hang out on?
You have no idea what you’re talking about.
Bonds from any era can be sold, or given, at any time.
Deb, your preferred, soft padded safe world has been gone for a long time (if it ever existed).
Actually, I do.
Bailouts are anti-free enterprise, no matter which Party does them.
Obviously bonds from any era are negotiable. As to your last sentence, you’ve lost your mind (if it ever existed). Try making sense.
Duh. Once again, TARP wasn’t a “bailout”, it was a loan and like Bush said, it’s being paid back. You can keep pretending you understand, but you obviously don’t.
Duh, you can rename it whatever you want, it was a BAILOUT.
And the Government LOANING money to business is ALSO anti-free enterprise.
The gov’t should declare the payment late and charge the banks 29% interest.