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Posted: 12/21/2009 11:32:47 AM EDT
That's going to leave a mark.





Number of delinquent bailed-out banks rises





By Binyamin Appelbaum


Washington Post Staff Writer


Monday, December 21, 2009;
2:54 PM












A growing number of banks that received federal aid are failing to send
the government quarterly dividend payments, the Treasury Department
reported Monday.




Fifty-five banks failed to make dividend payments in November, a 67
percent jump over the number of delinquent banks three months earlier.




Although many of the largest banks have repaid federal aid, the
government still has more than $100 billion invested in more than 600
banks under its Troubled Assets Relief Program. The terms of the
investment require the banks to pay dividends to the government every
three months. The annual amount paid by each firm generally equals 5
percent of its federal aid.




A growing number of the recipients face financial problems and have
been unable to pay the government. Fifteen banks failed to make the
required payments in May, federal data show. The number climbed to 33
banks in August, and 55 banks that failed to make the dividend payments
due Nov. 17.




Most of the firms on the list are small, community banks. The
largest is CIT, which wiped out its $2.3 billion debt to the government
when it filed for bankruptcy earlier this year.





Treasury did not immediately return a call requesting comment.
















Link Posted: 12/21/2009 11:36:27 AM EDT
The terms of the investment require the banks to pay dividends to the government every three months.


And the penalty for failing to make your payment on time is _________________________________________???  Seems like the article left out a rather important tidbit, though I'm not surprised since it's the WP.
Link Posted: 12/21/2009 11:38:57 AM EDT
Originally Posted By Bubbles:
The terms of the investment require the banks to pay dividends to the government every three months.


And the penalty for failing to make your payment on time is _________________________________________???  Seems like the article left out a rather important tidbit, though I'm not surprised since it's the WP.


there are no penalties when dealing with the federal gubbmint.  How else can we have a tax cheat for our IRS Boss?
Link Posted: 12/21/2009 11:41:54 AM EDT
Originally Posted By nissanfan84:
Originally Posted By Bubbles:
The terms of the investment require the banks to pay dividends to the government every three months.


And the penalty for failing to make your payment on time is _________________________________________???  Seems like the article left out a rather important tidbit, though I'm not surprised since it's the WP.


there are no penalties when dealing with the federal gubbmint.  How else can we have a tax cheat for our IRS Boss?


For my business, failure to pay the Treasury will result in levies, and account seizures. I am not an incompetent Executive however, so I will assume they will get a pass, a pat on the back and a big bonus as usual.
Link Posted: 12/21/2009 11:56:55 AM EDT
[Last Edit: 12/21/2009 11:58:19 AM EDT by Dave_A]





Originally Posted By Bubbles:





The terms of the investment require the banks to pay dividends to the government every three months.






And the penalty for failing to make your payment on time is _________________________________________???  Seems like the article left out a rather important tidbit, though I'm not surprised since it's the WP.





The 'payment' is a stock dividend, not a 'loan payment'.





While preferred stock (what the govt owns) normally comes with them, last I checked they are not *mandatory*...





This isn't 'paying back the bailout money', this is money the Feds (and other shareholders) get once a quarter (or in some cases once a year) off the top... EG, if all the banks pay back all the bailout funds, 'dividend' payments will then be profit for the govt...



IIRC, there are no penalties for not paying a dividend, except possibly a lawsuit if the dividend is required by some sort of contract



Dividends are paid to all stockholders in a specific group (generally preferred stockholders first, then 'common' stockholders get the leftoers) - they are not taxes.





 
Link Posted: 12/21/2009 12:06:08 PM EDT
[Last Edit: 12/21/2009 12:06:38 PM EDT by patriot73]
Originally Posted By Dave_A:

Originally Posted By Bubbles:
The terms of the investment require the banks to pay dividends to the government every three months.


And the penalty for failing to make your payment on time is _________________________________________???  Seems like the article left out a rather important tidbit, though I'm not surprised since it's the WP.

The 'payment' is a stock dividend, not a 'loan payment'.

While preferred stock (what the govt owns) normally comes with them, last I checked they are not *mandatory*...

This isn't 'paying back the bailout money', this is money the Feds (and other shareholders) get once a quarter (or in some cases once a year) off the top... EG, if all the banks pay back all the bailout funds, 'dividend' payments will then be profit for the govt...

IIRC, there are no penalties for not paying a dividend, except possibly a lawsuit if the dividend is required by some sort of contract

Dividends are paid to all stockholders in a specific group (generally preferred stockholders first, then 'common' stockholders get the leftoers) - they are not taxes.
 


It doesn't matter if it is payed in dividends, cash, chickens, magic beans. It is a payment to the treasury they are not making. Since you were a TARP cheerleader however, I am sure you will chime in with your usual insightful reasoning into why these motherfuckers shouldn't have their doors locked tomorrow and their assets if the have any, seized, auctioned and in-turn the proceeds returned to the taxpayer.
Link Posted: 12/21/2009 12:06:10 PM EDT



Originally Posted By Bubbles:



The terms of the investment require the banks to pay dividends to the government every three months.




And the penalty for failing to make your payment on time is _________________________________________???  Seems like the article left out a rather important tidbit, though I'm not surprised since it's the WP.



Not like they don't have the money, they can always borrow it from the gov, no, wait.....



This is a dividend payment.



 
Link Posted: 12/21/2009 12:21:36 PM EDT
[Last Edit: 12/21/2009 12:23:15 PM EDT by Dave_A]





Originally Posted By patriot73:





Originally Posted By Dave_A:
Originally Posted By Bubbles:




The terms of the investment require the banks to pay dividends to the government every three months.






And the penalty for failing to make your payment on time is _________________________________________???  Seems like the article left out a rather important tidbit, though I'm not surprised since it's the WP.





The 'payment' is a stock dividend, not a 'loan payment'.





While preferred stock (what the govt owns) normally comes with them, last I checked they are not *mandatory*...





This isn't 'paying back the bailout money', this is money the Feds (and other shareholders) get once a quarter (or in some cases once a year) off the top... EG, if all the banks pay back all the bailout funds, 'dividend' payments will then be profit for the govt...





IIRC, there are no penalties for not paying a dividend, except possibly a lawsuit if the dividend is required by some sort of contract





Dividends are paid to all stockholders in a specific group (generally preferred stockholders first, then 'common' stockholders get the leftoers) - they are not taxes.


 






It doesn't matter if it is payed in dividends, cash, chickens, magic beans. It is a payment to the treasury they are not making. Since you were a TARP cheerleader however, I am sure you will chime in with your usual insightful reasoning into why these motherfuckers shouldn't have their doors locked tomorrow and their assets if the have any, seized, auctioned and in-turn the proceeds returned to the taxpayer.



It does matter, because dividends are not *required*.





You cannot sieze a company for not paying dividends... TARP or no TARP...





You are thinking of this as if they are loan payments...





They're not...





Loans were never even on the table - it was 'buy assets' and then it became 'buy stock'...





The govt now owns preferred stock. If the bank pays a dividend, they get 'extra' money (the 'profits' I was talking about)...





If the bank does NOT pay a dividend, oh-well...





To 'pay back' the government, the bank has to buy back the stock in question. Any dividends paid out do not count towards that activity, and are pure profit for the .gov and other shareholders





 
Link Posted: 12/21/2009 1:19:46 PM EDT
Originally Posted By Dave_A:

Originally Posted By patriot73:
Originally Posted By Dave_A:

Originally Posted By Bubbles:
The terms of the investment require the banks to pay dividends to the government every three months.


And the penalty for failing to make your payment on time is _________________________________________???  Seems like the article left out a rather important tidbit, though I'm not surprised since it's the WP.

The 'payment' is a stock dividend, not a 'loan payment'.

While preferred stock (what the govt owns) normally comes with them, last I checked they are not *mandatory*...

This isn't 'paying back the bailout money', this is money the Feds (and other shareholders) get once a quarter (or in some cases once a year) off the top... EG, if all the banks pay back all the bailout funds, 'dividend' payments will then be profit for the govt...

IIRC, there are no penalties for not paying a dividend, except possibly a lawsuit if the dividend is required by some sort of contract

Dividends are paid to all stockholders in a specific group (generally preferred stockholders first, then 'common' stockholders get the leftoers) - they are not taxes.
 


It doesn't matter if it is payed in dividends, cash, chickens, magic beans. It is a payment to the treasury they are not making. Since you were a TARP cheerleader however, I am sure you will chime in with your usual insightful reasoning into why these motherfuckers shouldn't have their doors locked tomorrow and their assets if the have any, seized, auctioned and in-turn the proceeds returned to the taxpayer.

It does matter, because dividends are not *required*.

You cannot sieze a company for not paying dividends... TARP or no TARP...

You are thinking of this as if they are loan payments...

They're not...

Loans were never even on the table - it was 'buy assets' and then it became 'buy stock'...

The govt now owns preferred stock. If the bank pays a dividend, they get 'extra' money (the 'profits' I was talking about)...

If the bank does NOT pay a dividend, oh-well...

To 'pay back' the government, the bank has to buy back the stock in question. Any dividends paid out do not count towards that activity, and are pure profit for the .gov and other shareholders
 


Same thing sorry. Pay out a dividend, buy the stock back. Same thing.

At the end of the day, the taxpayer will hold the bag, your tarp predictions will have turned out wrong and you will continue to do high kicks and poms for anything corporate or governmental despite thievery, treason or fraud.

"Sit down here boy, have a cigar, you're gonna go far"

"Did I tell ya the name of the game Son?"
Link Posted: 12/21/2009 1:48:58 PM EDT



Originally Posted By patriot73:



Originally Posted By Dave_A:




Originally Posted By patriot73:


Originally Posted By Dave_A:




Originally Posted By Bubbles:


The terms of the investment require the banks to pay dividends to the government every three months.




And the penalty for failing to make your payment on time is _________________________________________???  Seems like the article left out a rather important tidbit, though I'm not surprised since it's the WP.



The 'payment' is a stock dividend, not a 'loan payment'.



While preferred stock (what the govt owns) normally comes with them, last I checked they are not *mandatory*...



This isn't 'paying back the bailout money', this is money the Feds (and other shareholders) get once a quarter (or in some cases once a year) off the top... EG, if all the banks pay back all the bailout funds, 'dividend' payments will then be profit for the govt...



IIRC, there are no penalties for not paying a dividend, except possibly a lawsuit if the dividend is required by some sort of contract



Dividends are paid to all stockholders in a specific group (generally preferred stockholders first, then 'common' stockholders get the leftoers) - they are not taxes.

 




It doesn't matter if it is payed in dividends, cash, chickens, magic beans. It is a payment to the treasury they are not making. Since you were a TARP cheerleader however, I am sure you will chime in with your usual insightful reasoning into why these motherfuckers shouldn't have their doors locked tomorrow and their assets if the have any, seized, auctioned and in-turn the proceeds returned to the taxpayer.


It does matter, because dividends are not *required*.



You cannot sieze a company for not paying dividends... TARP or no TARP...



You are thinking of this as if they are loan payments...



They're not...



Loans were never even on the table - it was 'buy assets' and then it became 'buy stock'...



The govt now owns preferred stock. If the bank pays a dividend, they get 'extra' money (the 'profits' I was talking about)...



If the bank does NOT pay a dividend, oh-well...



To 'pay back' the government, the bank has to buy back the stock in question. Any dividends paid out do not count towards that activity, and are pure profit for the .gov and other shareholders

 




Same thing sorry. Pay out a dividend, buy the stock back. Same thing.



No, they are NOT THE SAME THING.



A dividend is a payment made, optionally, to stockholders - it is their 'slice' of the company's profits for that period, as owners of the company. It has NOTHING to do with buying/paying anything back.



Buying stock back, is the company actually purchasing the shares held by another entity (say, the govt) back.



Totally separate.



So long as the govt continues to hold the stock, they will recieve dividends IF a dividend is paid... This has NOTHING to do with 'paying back' TARP money, or 'buying back' stock.





At the end of the day, the taxpayer will hold the bag, your tarp predictions will have turned out wrong and you will continue to do high kicks and poms for anything corporate or governmental despite thievery, treason or fraud.



There is no basis for this, at all...











 
Link Posted: 12/21/2009 4:12:07 PM EDT


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