Skip to comments.Banks Repay TARP Loans With Money Meant For Small Businesses
Posted on 10/09/2011 9:40:26 PM PDT by Laissez-faire capitalist
(Wall Street Journal) - More than half of $4 billion in federal funds disbursed this year to spur small business lending by community banks was used to repay bailout funds that the banks received under the government's Troubled Asset Relief Program (TARP), the Wall Street Journal reported Thursday.
The Small Business Lending Fund was meant to raise capital at smaller banks, which tend to lend more heavily to small businesses, in the hopes of jump-starting growth and employment. But instead of directly lending to small businesses, many of the banks used the money to rid themselves of higher-cost TARP debt and tougher restrictiins...
(Excerpt) Read more at myfoxboston.com ...
What say you?
Even if they are lending why would I borrow what I am unsure ill be able to repay due to ever changing regulations and taxes?
It was not difficult to predict what the outcome of this would be. We know what small banks are worried about. And until he and his policies and czars are out of power, nothing is going to change. They know what they are dealing with now — with NO DOUBTS.
This story is devasting to the lies that Obama, Geithner, Benerke etc told about the success of the TARP program funding, the stimulus funding, and plans for future stimulus III funding programs.
Would love to see an House committee investigation of this misuse of TARP funds. WOuld really put the screws to the Obie administration and its financial success claims.
What good does a favorable business environment matter when no one will lend?
Dems are hitting small businesses from all sides, as simultaneously as they can.
There are many on FR who repeat that BS, when all the banks did was a shell game.
Obama’s regulations are devestating, but TARP is also a disaster as well. Combine that with banks stifling loans to small businesses, even those willing to take a chance, and things are truly going downhill further.
Ever hear Brian Kilmeade talk about how banks are repaying TARP, yada, yada, yada? I know what you are talking about...
Is there anything about TARP which is not corrupt?
edit.. “repaying TARP [money]...”
I’d be interested in knowing exactly HOW the $700,000,000,000 figure for TARP was arrived at. I’ve heard Rush say (and also read) that some “treasury official” said that they (treasury) needed a “really big number” to get peoples attention and that they finally decided on 700 billion.
(sarcasm) My how wonderful the Obama economic stimulus programs create jobs (/sarcasm).
I asked for a $2.5 million loan for a property to develop. It had a Real appraised value of $10 million. I would have created 500 REAL jobs, and could have paid it within 7 years, with interest. I went to ten banks, and they all told me they weren’t lending...
I gave up!!!
The big banks repaid TARP as fast as they could to get out from government controls, most in 2009.
This did not make “government” happy. Geithner and obama intended to use TARP to control the banks and to control their business decisions, their lending decisions, and executive compensation programs. The “government” tried to make it difficult for the banks to repay TARP by requiring that banks get “permission” to repay TARP.
Remember that Paulson forced some banks to take TARP money so the ones who “needed” it would not be “stigmatized”, then Treasury tried to prevent them paying it back, under the guise of requiring “stress tests”. Most banks repaid TARP by raising capital through stock sales. You have to look hard at who has not repaid TARP, and why.
Interesting that now we get a whole new negative set of stories about TARP, just as the dems ramp up public resentment of the banks- even the big banks that repaid TARP 2 years ago.
If Congress just passed another handout program that the smaller banks are using to repay TARP, so what. Should they be using it to make risky loans? Maybe that is what Congress intended..... more of what got us into this mess. Government intervention in bank lending decisions.
It is disingenuous to say the economy would be better if banks “lent” more money?
The demand for bank loans by businesses is “normally” driven by expansion to meet consumer demand for goods and services. Exactly where is that coming from, in this economy? Not from the tens of millions of unemployed or underemployed. They could give my local restaurants $100 million in bank loans but it wouldn't make more people go out to eat.
Our elected reps in the House and Senate should have said no to TARP. Tea Partiers and others display a negative sentiment towards TARP because it is corporatism and was the wrong path to take.
Obama, fellow Dems and even Rinos supported TARP from the beginning, despite the outcry coming from the left and the right.
I believe they were all deceived into supporting TARP, even the President was deceived. Either they were all lied to or we were lied to or both. I still remember George Bush with tears in his eyes and thinking “WTH is REALLY going on???”
TARP morphed into something far different than what was presented and so rapidly force-voted on, under duress. Imagine a cockroach like Paulson threatening to surround the Capital with tanks until he got a yes vote. Imagine our President and our Congress accepting this.
The GOP should have walked out en masse. Maybe they would, if they knew then what they know now.
Look at the donations to the reelection campaigns about that time to see where some of the TARP money went to. Hell McShithead stopped his campaign to run back to Congress to get in on the action.
Yeah, Bush and all those poor suckers didn’t have clue what was going on when Paulson demand immunity in distributing Tarp funds, it was the core of the bill and everyone obliged. All investment houses became full fledged banks and sold mortgages to the GSEs at par.
What planet do you live on silverleaf? Banker’s heaven?
Of course the Banks would use the money to pay off the higher interest debt.
So I Borrow money from you to Pay you back the Money I owe you,while I was supposed loan it to someone else who probably will go out of Business because of the Person who Loaned me the money in the first Place.
And a one and a two and three!
What did they THINK they’de do with it? Let’s see... Loan it out to people who aren’t borrowing because they can’t afford it? Or two, get out from under Uncle Sam...
And this is hard to figure out?
I nominate you to run for Congress!!
The planet where if a bank was forced inot tkaing tARP and raised money by stock purchases and paid back TARP - with interest - 2 years ago
hy are we still bitter against them for taking TARP?
What planet are you living on? The planet where using bank money and bank services is “free”, if you want a bank loan the govt says they HAVE to give it to you, if you can’t pay back a loan the govt says they HAVE to forgive it because their executives are rich, they already have too much money, and unicorns crap skittles?
The biggest waste of TARP money went to GM and no mobs are occupying GM plants.
That money came with strings attached and they said, "No, thanks".
QE2 began the giveaway to private industry in earnest and continues to this day with this administration as paybacks coming to them through the front door again go out through the back door to ‘green’ pet projects at the administration’s whim. Congress sits idle. And banks continue fantasy accounting, in reality are broke.
The only reason for banks to get out from underneath government TARP loans was to get free of the bonus limits that could be paid out to officers under morphed TARP rules.
Here’s a comment from a Financial Times article about Frannie and Freddie (GSEs) on 10/9/11 that I can’t link to but here is the comments as this guy gets it...
“Did not Fannie and Freddy blithely take over the banks’ corrupt mortgages? How then can the myth that the banks fully paid back the US Treasury continue to be perpetrated by the mainstream media? Oh, I forgot their corporate owners are invested in public acceptance of that misleading proposition.”