Comments on: Guest post: Ten big banks receive approval to repay TARP funds

By: Greg

Greg — Thu, 11 Jun 2009 18:35:42 +0000

My impression was that the Lost Decade in Japan didn't involve reaching for yield; rather, banks just propped up weak debtors, which restricted new lending to healthy firms.

I don't see this development as a particular negative. Anything that give the government less skin in the game in the commercial sector is a positive.

By: RTD

RTD — Wed, 10 Jun 2009 12:01:43 +0000

What happens to bank profitability when money from the Fed is no longer free? Any idiot with access to Fed facilities can make money borrowing at 0.25% and buying Treasuries at 4%.

–RueTheDay

By: AMS

AMS — Wed, 10 Jun 2009 08:28:29 +0000

You don't think Citi will make the grade? Could it be because they're allocating funds to attract traders with $3.0m guaranteed sign up bonus instead of boosting capital??

http://news.efinancialcareers.co.uk/newsandviews_item/newsItemId-19475?efc_eu=2949

By: Views By a

Views By a — Wed, 10 Jun 2009 07:20:07 +0000

Let's not forget about the warrants that the U.S. government obtained. Normally the banks need to buy back these warrants in order to leave the TARP program completely, but (I can hear you crying now) they cost too much. So the bankers want the government to give all or some of them up for free.

See Bloomberg's
"Banks Seeking Full Escape From TARP Must Buy Back $5 Billion of Warrants"

By: john bougearel

john bougearel — Wed, 10 Jun 2009 05:27:28 +0000

Ed,

The financial system is being reconstituted almost the same as it ever was.

My point is this: The banks repaying TARP funds today with taxpayer dollars via the TLGP will be the same firms selling short the firms unable to repay

The bigger become even badder as they acquire assets from the smaller and gooder

By: Ryan

Ryan — Wed, 10 Jun 2009 03:20:51 +0000

Here’s why this confirms your worst fears and what it means for U.S. finance going forward. The U.S. taxpayer ponied up $700 billion even while the unemployment rate has zoomed up to a 26-year high and home prices have plunged more than 30% nationwide. Going forward, things look fairly difficult for the taxpayer, but some bankers are now free to return to business as usual.

Well let's all start being honest with ourselves. These people don't care about me, you, or any normal people. The bankers, no one in government with any actual power does, that's just how the world works. They're only out for themselves. Politicians because they need banker money for campaign donations, and bankers so they can be rich with no strings tying them down.