Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
Location: Jonquil City (aka Smyrna) Georgia- by Atlanta
16,259 posts, read 24,766,887 times
Reputation: 3587
Quote:
Originally Posted by pghquest
Jees, that was rather quick.. Tell me that deal wasnt lined up prior to taking them over
I can just see the Bancorp meetings now...
"Now that we have all of this TARP money, what banks can we acquire?"
Yes, I know Bancorp repaid their money months ago, but tell me how a bank can be in such financial disarray that they need a bailout one month, and then financially stable a few months later to be deemed safe enough to buyup other failing banks"?
Of course the deal was made before. The Federal Government does not like being in the banking business. Not even for a day if they can help it.
The OP is likely using the term "jackpot" to indicate one big cluster**ck of bank failures, perhaps as to educate folks into realizing this is the effect of bailing out the big boys and endlessly inflating bubbles, as opposed to rooting for failure.
You are right summers..I was not rooting for failure.
Jackpot was meant in terms of this is the FDIC's biggest sweep to date..9 in one day. It came out rather late as well on Friday as opposed to 5-5:30.
Must have been lots of coordination there.
It IS good that other banks are taking them over and there have been fairly public projections of many bank failures this year.
And even if it was, so what? Of course strong corporations eye-ball the weak ones and consider taking them over.
Show you what was? Banks were taken over by the FDIC Friday, Bancorp agrees to take over the very same 9 banks within minutes of their takeover.
It was YOUR link that pointed out that the sale took place the very same day they were taken over.. Do you think this is something they just threw together and got lucky on finding a buyer a few minutes after the takeover, who just happened to agree to take on branches starting in Arizona up to Ontario?
Of course the deal was made before. The Federal Government does not like being in the banking business. Not even for a day if they can help it.
Tell me though how a bank that received $6B in Tarp funds because they were not liquid months ago, can all of a sudden be solid enough to be taking over not 1, but 9 different banks?
That just doesnt sound right. If they werent sold enough that they needed a bailout, then a few months later they cant all of a sudden have a balance sheet good enough to take on tens of billions in other assets/liabilities.
I find it odd that many who decry the "too big to fail" mantra have no problem with the government facilitating the expansion of these "too big to fail" banks. Did we learn nothing over the last year, that too big to fail simply means too big, and we shouldnt be helping to make them bigger, making any future collapse another taxpayer liability?
Show you what was? Banks were taken over by the FDIC Friday, Bancorp agrees to take over the very same 9 banks within minutes of their takeover.
It was YOUR link that pointed out that the sale took place the very same day they were taken over.. Do you think this is something they just threw together and got lucky on finding a buyer a few minutes after the takeover, who just happened to agree to take on branchesstarting in Arizona up to Ontario?
That's how it works. I am not sure what you are complaining about. You think they ran into trouble overnight? No, it happens over time, and at some point FDIC moves in and helps arrange the deal. Even most of the bank empoyees get to keep their jobs.
That's how it works. I am not sure what you are complaining about. You think they ran into trouble overnight? No, it happens over time, and at some point FDIC moves in and helps arrange the deal. Even most of the bank empoyees get to keep their jobs.
How can a bank that needed $6 Billion months ago because they were "too big to fail" and wasnt solvent themself, now be deemed just months later stable enough to take on $18B in other liabilities?
Why would the government continue to facilitate "too big to fail" banks, and help them get bigger? What happens next time this bank needs help? We hand them $18B taxpayer dollars?
How can a bank that needed $6 Billion months ago because they were "too big to fail" and wasnt solvent themself, now be deemed just months later stable enough to take on $18B in other liabilities?
Why would the government continue to facilitate "too big to fail" banks, and help them get bigger? What happens next time this bank needs help? We hand them $18B taxpayer dollars?
Apparently the bailout exceeded all expectations in this case. US Bankcorp was not said to be too big to fail, but they got TARP money anyway, and they sprung back on their feet and paid off the TARP loan within months and now they are already in position to expand. Are you saying the government should have stepped in to prevent this deal?
Apparently the bailout exceeded all expectations in this case.
right, Bancorp managed to turn $6B into $18B within months, exceeding "all expectation".. Who are you trying to kid? I invest heavily in bank stocks and I know better.
Quote:
Originally Posted by Finn_Jarber
US Bankcorp was not said to be too big to fail, but they got TARP money anyway, and they sprung back on their feet and paid off the TARP loan within months and now they are already in position to expand.
Indeed they were. Bancorp is the 8th largest bank in the country with over 240 BILLION in assets. They were deemed so unstable just months ago that the SEC stopped any short selling of their stock in order to help not depress their already dier situation.
Quote:
Originally Posted by Finn_Jarber
Are you saying the government should have stepped in to prevent this deal?
I'm asking why individuals who criticize banks for being allowed to grow so large that the taxpayers have to bail them out in the event they have trouble, have no issue when the government not only allows them to get bigger, but helps them in doing so? You dont see the contradiction here?
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
