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Or so the politicans that were against it say.I want proof that this is being done. The only people that are saying they are spending it on bonuses are those agianst it in the first place. The rumpors that get spread are crazy now days. No news agency that I have seen is reporting it is in fact being done.
It could be that the limited lending already done, the lossses on current loans, and the 'mark to market' rules have put these institutions at the limit so that the additional capital is just bring reserves back to required levels. May not be room for much lending.
Location: Georgia, on the Florida line, right above Tallahassee
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Quote:
Originally Posted by texdav
Or so the politicans that were against it say.I want proof that this is being done. The only people that are saying they are spending it on bonuses are those agianst it in the first place. The rumpors that get spread are crazy now days. No news agency that I have seen is reporting it is in fact being done.
In letters to the heads of the each of the nine banks involved, Mr Waxman noted that the banks have accumulated a collected remuneration pool of $108bn for the first nine months of this year, almost the same as last year, in spite of the dire state of the banking sector this year. Goldman's current compensation pool stood at $11.4bn for the nine months to August 31 – and last year totalled $16.92bn, equivalent to $564,000 per employee.
It could be that the limited lending already done, the lossses on current loans, and the 'mark to market' rules have put these institutions at the limit so that the additional capital is just bring reserves back to required levels. May not be room for much lending.
Participating banks under the bailout legislation are no longer required to have reserves if the Fed thinks that's necessary.
From the bailout legislation passed by Congress:
Quote:
SEC. 128. ACCELERATION OF EFFECTIVE DATE.
Section 203 of the Financial Services Regulatory Relief Act of 2006 (12 U.S.C. 461 note) is amended by striking ‘‘October 1, 2011’’ and inserting ‘‘October 1, 2008’’.
Quote:
Section 203
Federal Reserve Banks are authorized to pay banks interest on reserves under Section 201 of the Act. In addition, Section 202 permits the FRB to change the ratio of reserves a bank must maintain relative to its transaction accounts, allowing a zero reserve ratio if appropriate. Due to federal budgetary requirements, Section 203 provides that these legislative changes will not take effect until October 1, 2011.
Banks are in a no win situation. There are probably MANY loan applicants out there NOW that don't qualify, thus no loan.
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