"Bailout may continue; Treasury official tells Congress TARP aid may be needed for another year" by Anne Flaherty, Associated Press | September 25, 2009
WASHINGTON - The Obama administration yesterday sent its clearest signal yet that it is prepared to extend its $700 billion bailout for Wall Street for another year, even as lawmakers said they were frustrated not enough was being done to help the average American....
Heck, "it may never be known whether the initial $700 billion plan accomplished its objectives"
Also see: Banker's Slush Fund
Yup, ALL THAT $$$ that got PAID BACK and "BENEFITED" the TAXPAYER is to be a REVOLVING SLUSH FUND for BANKS!
That's what the BAILOUT BILL BECAME: a PERMANENT SLUSH FUND!
While some economic indicators suggest the nation is beginning to heal from the worst crisis in decades, analysts warn that the market is fragile. Hundreds more banks are expected to fail in the next few years, largely because of souring loans for commercial real estate....
Yeah, that is the OTHER SHOE DROPPING as OUT-of-WORK and WAGE-DROPPING Americans can not sustain consumer spending.
Whadda ya mean the mall's closed?
According to the administration’s latest report, the Treasury has committed $443.8 billion from the fund to specific institutions. Banks have paid back the Treasury $70.3 billion of the assistance they received, and they have paid nearly $9.4 billion in dividends and interest payments.
Yeah, right, the taxpayer is making out on this! Pfft!
TARP is credited in part with pulling back the financial sector from near collapse last year. But its infusions of money into huge banks, the giant insurer AIG, and the auto industry have been unpopular with the public and in Congress, where lawmakers are under pressure to save jobs and stop foreclosures. Senate Republicans were adamant that the government terminate the program now that the United States is no longer in a state of emergency.
Not trying to be divisive, but SEE WHO is at least calling for an end to the looting?
Public is never listened to; any of these guys up for reelection? Bye!
Senator David Vitter, a Louisiana Republican, said TARP was shaping up to be a permanent fixture in government. Herbert Allison Jr., the Treasury official in charge of the bailout fund, denied this, telling Vitter, “We’d like to see this wound down as soon as possible.’’
Then STOP IT! Just STOP!
You don't HAVE TO GIVE THEM the $$$! GIVE IT BACK!
But nope, even more loot is going to be passed around:
"Bailouts for smaller banks being considered" by Associated Press | September 26, 2009
WASHINGTON - Treasury officials and regulators are weighing a fresh round of bailouts for banks that were deemed too risky to qualify for earlier aid.
(Blog editor throws his hands up in air)
Representatives from the Treasury Department, Federal Deposit Insurance Corp., and House Financial Services Committee discussed the plan by phone Thursday, said Dan Doyle, California Bankers Association chairman, who was on the call. Small community banks are struggling as commercial real estate and other loans go sour. Officials and industry representatives are considering how to get money to those banks, Doyle said yesterday.
The new program could force Treasury to postpone closing its $700 billion bailout fund, which is scheduled to expire this year. That decision has become a political hot potato amid public backlash against bailouts and a rising deficit.The money could go to banks whose ratings by regulators made them too weak to qualify for earlier rounds of funding. It may be limited to banks with less than $5 billion on their books. The banks could be required to raise matching money in the private markets, Doyle and others said.
I was just wondering when AMERICAN TAXPAYERS are going to BAIL THEMSELVES OUT!
Of course, Massachusetts banks won't be needing or getting any tax loot.
"A tough quarter for Mass. lenders; Community banks cite economy and fees, but say they’re still strong" by Todd Wallack, Globe Staff | August 12, 2009
A number of Bay State community banks said their earnings were bruised last quarter by the weak economy and millions of dollars in extra fees to insure their deposits....
Several banks.... swung from a profit to a loss.
“It’s pretty much a reflection of what’s been going on throughout the country,’’ said Eastern Bank spokesman Joe Bartolotta. “The economy stinks.’’
Despite the lower numbers, most prominent local banks.... remain in the black.
At the same time, the Federal Deposit Insurance Corp., which guarantees bank deposits, has been ratcheting up its fees to replenish its insurance fund, putting additional pressure on bank earnings. The FDIC insurance fund has been drained in recent months by a wave of bank failures. Since the start of 2008, 97 banks have failed across the country, though none have been in Massachusetts.
In May, the FDIC decided to slap banks with a one-time assessment of roughly 5 cents for every $100 in assets. Middlesex Savings said the special assessment cost the bank $1.6 million in the second quarter and reduced its earnings by nearly one-quarter. Boston Private Bank & Trust said it cost the bank $1.4 million. And Independent Bank spent $3.8 million on FDIC fees in the quarter, seven times what it spent the same quarter a year ago.
FDIC chairman Sheila C. Bair recently said it is likely that the FDIC will impose another special assessment in the fourth quarter to help shore up its fund, which could further crimp bank’s earnings. Despite the higher insurance fees and the economic downturn, some reported higher earnings in the second quarter.
While you suffered, Bay Staters....
Salem Five Cent Savings Bank said its earnings rose 62 percent to $5.1 million for the quarter, mainly because it has been busy refinancing mortgages and issuing new home loans. Kim Meader, an executive vice president at Salem Five, said the bank had more than enough reserves to cover $2.7 million in bad loans that it wrote off in the quarter, so the charge-offs didn’t hurt its profits....
Meader said the bank has also benefited from reduced competition in the mortgage business, as many companies went out of business, and from reducing rates it pays depositors....
Yup, so the COLLAPSE of the market and the JOB LOSSES actually HELPED, and SLASHING INTEREST PAID on lowly savings of customers is a BIG HELP!
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