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as long as they remain independent. But if they go to a bank – or the federal government -- and plead for a loan, then the lender is perfectly justified in imposing all sorts of conditions
BUT... there's a lot of banks that did not need or want the money in the first place and it was forced on them.
Fast forward to today, and that same bank is begging to give the money back. The chairman offers to write a check, now, with interest. He's been sitting on the cash for months and has felt the dead hand of government threatening to run his business and dictate pay scales. He sees the writing on the wall and he wants out. But the Obama team says no, since unlike the smaller banks that gave their TARP money back, this bank is far more prominent. The bank has also been threatened with "adverse" consequences if its chairman persists. That's politics talking, not economics.
Quite the contrary. There has been quite a bit of market pressures for banks to repay TARP funds before they can actually do so. By paying back money, the certain banks are attempting to influence capital markets by signifying that they are financially able to do so, even when they aren't. The Fed and Treasury quite correctly have refused to allow banks to play this game.
True. Plus they need to prove that they'll have a decent cushion and are running responsibly in case of more trouble down the line as the article in the OP sez.
Not aloowing the banks to payback the moenyis a very dangerous decision on governamnts part.basicvally the governamnt needs to get out of businesss as soon as possible.
True. Plus they need to prove that they'll have a decent cushion and are running responsibly in case of more trouble down the line as the article in the OP sez.
more trouble down the line? I think the money tree is about bare. If there are more bailouts needed I do not see where the money will come from.
Of course they do not want the Banks running on their own again. That would derail their agenda to control them. It is unbelieveable to me that the Goverment will not allow the banks to pay this money back if they have it.
Let me ask you something. Do you think the Obama Admin wants the federal government to own the big fin. insts and auto companies?
Permanently?
To what end?
Why do you think the biggest capitalists on earth havent done anything to avoid the erasure of capitalism? just some grumbling but no lawsuits, no serious opposition in Congress, etc...I mean, a socialist takeover of the US, you'd think there'd be less accommodation....why do you think this is?
Have you ever watched the questioning of Benanke or Geithner when they've been before the House Budget Committee?
Morgan Stanley was judged in last month’s stress tests to need an additional capital buffer of $1.8 billion. The New York- based bank then raised $4.6 billion in common equity, only to be told this week it needed $2.2 billion more to repay TARP.
‘Little Bit More’
“It doesn’t make a lot of sense if they’ve raised well in excess of the initial capital requirement to then be told you need a little bit more,”
The government can change the rules any time it feels like it. That also is very dangerous, and does nothing to contribute to stability or credibility in the claim that they know what they are doing.
Where's our genius Mr. Geither in all this, that he can't design a stress test that is accurate and dependable?? Is this fair to the companies that meet and exceed the requirements set down by the government?
Let me ask you something. Do you think the Obama Admin wants the federal government to own the big fin. insts and auto companies?
Permanently?
To what end?
Why do you think the biggest capitalists on earth havent done anything to avoid the erasure of capitalism? just some grumbling but no lawsuits, no serious opposition in Congress, etc...I mean, a socialist takeover of the US, you'd think there'd be less accommodation....why do you think this is?
Have you ever watched the questioning of Benanke or Geithner when they've been before the House Budget Committee?
We'll see.
I was just watching Berenke get questioned and explained we cannot go on in the long term with these deficits.
But all the behaviors lately demonstrate a need for control. Their clear agenda is to control and I believe it is wrong. And if you think they are going to let go when they should be, then why are they not allowing the banks to repay right now and why did they force TARP down their throats?
The financials had no intention of putting the brakes on themselves -- this is why now, they want to give the TARP money back, etc. They dont want to be regulated. It's not their nature, but nevertheless brakes have to be applied form time to time.
This Admin stepped in and is doing the dirty work the Biush Admin didnt have the nerve to step up and do.
If they have to be "controlled" until they're in shape then what's the alternative? Letting them run wild they wa they were?
Still waiting to hear if you (or anyone) thinks the Obama Admin wants to own these things permanently, and if so why they would want that - what benefit would it bring anyone -- and why, if this is the cataclysm you've been told it is, more of the world's biggest capitalists arent DOING SOMETHING TO STOP IT!
Morgan Stanley was judged in last month’s stress tests to need an additional capital buffer of $1.8 billion. The New York- based bank then raised $4.6 billion in common equity, only to be told this week it needed $2.2 billion more to repay TARP.
‘Little Bit More’
“It doesn’t make a lot of sense if they’ve raised well in excess of the initial capital requirement to then be told you need a little bit more,”
The government can change the rules any time it feels like it. That also is very dangerous, and does nothing to contribute to stability or credibility in the claim that they know what they are doing.
Where's our genius Mr. Geither in all this, that he can't design a stress test that is accurate and dependable?? Is this fair to the companies that meet and exceed the requirements set down by the government?
Exactly - they can do whatever they want on their power trip. It will backfire and we will be worse because the Government, who couldnt manage their way out of an airport parking lot, is managing our money.
Good Luck. In our Government we trust!
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