I wonder why?

Bankers: Take your TARP money back
Some banks say the government's stabilization plan is actually weighing them down.
By Allan Chernoff, CNN senior correspondent
Last Updated: March 27, 2009: 9:44 PM ET

NEW YORK (CNN) –– There's a growing sense among some bankers that Troubled Asset Relief Program known as "TARP" has become toxic. As a result, they want to bail out of the bank bailout program.

"It should be called 'TRAP,' not TARP," said Brian Garrett, chief executive of Bank of the Bay in San Francisco, who is trying to return bailout funding. "Giving it back is harder than getting it."

Garrett and other bank executives complain the Treasury's program to stabilize banks during these turbulent times is actually weighing down their potential for growth.

They're especially concerned the limits on executive compensation - imposed in February, four months after Treasury starting sending out checks - could make it difficult to hold on to star talent who may jump to financial institutions that are not receiving any Government assistance.

That concern is now magnified after the public whipping insurance giant AIG received for granting executive bonuses. No one wants to be the next AIG (AIG, Fortune 500).

"Things have changed since TARP was announced. The rules have changed," said Michael McMullan, CEO of the Bank of Florida, who withdrew his application for TARP funds Thursday. "We're going to need to attract and retain key revenue drivers and great bankers."

"The more restrictions that we are placed under from the Government, the less value we can deliver to our shareholders in the long run," said McMullan.

Iberiabank in Louisiana, California's Bank of Marin, and TCF Financial in Minnesota confirm to CNN Money that they are asking Treasury to take back their TARP funds.

"What these bank managers are saying is - listen, I want the Government out of my backyard, and I just want to give back the TARP, and I want to run my company by myself," said Paul Miller, Financial Services Analyst at FBR Capital.

Goldman Sachs (GS, Fortune 500), Bank of New York/Mellon (BK, Fortune 500), Wells Fargo (WFC, Fortune 500), JP Morgan Chase (JPM, Fortune 500) and Bank of America (BAC, Fortune 500) - all 'mega-banks' that the government forced to take bailout money - say they want to return taxpayer funds "as soon as practical."

But, they're well aware no one will be permitted to return funds before completion of regulatory "stress-tests" of the major banks to determine how they would withstand a severe recession.

"We want to return the TARP money as soon as possible. We feel more bullish about economic prospects broadly, but we recognize we can't repay the money without the approval of the regulators," said Goldman Sachs spokesman Lucas Van Praag.

The "stress-tests" are supposed to be finished next month. But it's likely the Treasury will not permit bankers to return taxpayer money for many more months.

The main purpose of TARP is to stabilize the banking system, to prevent a run on any bank that appears to be in trouble. It has done that much.

If Treasury starts taking money back from healthy banks while the economy is still in trouble the weaker banks may appear to be even weaker and the confidence that TARP brought may suddenly disappear.

"The Government has to maintain confidence throughout the banking sector. These banks are all interconnected," said Miller.

Bankers may not like the Government interfering in their business. But, right now, those who have taken TARP funds have little choice.

http://money.cnn.com/2009/03/27/news/economy/tarp_takeback/index.htm

>Free money??
>Sure!
>You're gonna do what to my bonus??
>No "we" don't need the money.

What a shocking turn of events.

The genie's already out of the bottle now.  

Shit, I coulda told you that was going to happen.

"There is nothing FREE about a free lunch"

only problem is obama wont let them give it back! part of the tarp plan was the goverment wanted control of the banks,remember some of the banks were FORCED to take the money.

Its a tarp!

yep

This is BS.  If they want to return it, they should be permitted to do so.

Should have listened to admiral ackbar.

You guys are slipping......



I can't believe no one said it yet................













FUCK OBAMA

Official "win" post of March 29, 2009

Anyone who didn't see that coming needs to have their eyes checked!

If only there were an economic system that was based on these principles...




 

Sounds like a good thing to me.  I'd be willing to bet most of those top banks didn't really need the money.

It's OK for them to eyeball everything a customer does, but it aint OK for the gov to eyeball them.

Fkn crooks!

The banks really didn't need money.
This hole thing has been fabricated so the government can save us and nationalize everything.
Banks around here have put signs out "WE HAVE PLENTY OF MONEY TO LOAN".

It's about time these bankers grew a set. Get the government the hell out.
They didn't need the money but took it because of greed. Who wouldn't take "FREE" money even if the didn't need it.
Now there are restrictions hell yow they want to give it back. Just shows you they didn't need it in the first place.

I don't know about everyone else but the malls around here are full, the restaraunts are full, the stores
are busy, If it's so stinking bad I don't see it.

People need to realize the guberment is not our friends. If they offer help run!
Once they help you they own you! They enslave people.

If banks have plenty to loan, they would be loaning it. I know a guy who owns a motorcycle dealership, and the last day I saw him he could have put 3 guys on a bike and a 4th was waiting for word (didn't look good) but the loans all got denied on these guys who had good credit.

They won't take it back? Fine. Convert it into C notes and drop it out of helicopters.

same thing in the RV business cant get loans for them. 17 RV manufacturers have gone out of business this year.

So the light of comprehension has begun to shine upon them.



Good.



Every bank that rejects TARP should be able to avoid being part of the new socialist agenda.





CJ

.gov cheese was great until they saw the AIG trainwreck.


Growth has nothing to do with it. These clowns happily loaned money to everyone and anyone, knowing damn well that they would never pay it back at the .gov would pick up the tab. But now all of a sudden everything is different.

Fucking assdouches.

They have turned it all into bad money now....

Right up until they're forcibly nationalized, anyways.

But we've been told that it's take the money or else. You know black helicopters, black suburbans and FEMA camps.

If they are so eager to give it back so soon, they didn't need it in the first place.

Is true! They will only loan money to those people who don't need a loan.

This.



I love the "Big Daddy" capitalist types, who just LUUUUUVE the taxpayer-funded Free-Money-Unca-Suga-Cash-Infusion... they think it's going to be all ice-cream and cotton candy. What, were these executives all seven-year-old boys? I thought they were BANKERS. You usually don't have to tell bankers that money given out isn't "manna from Heaven."



"DURHRRR, YOU MEAN THERE'S RULEZZ? WHAAA?" <shakes head>



Capitalism is just fucking fine when the small guy gets whacked by the big stick of risk. When the Bad Thing starts happening to the 1:00 Tee-Off Time and Martinis Crowd, then that's when the real wailin'-and-a-weepin' starts happening.

1) When the TARP money was given out, there were no strings attached (nor should there have been)... It was seen as needed to fix specific systemic problems...

2) Now that the Dems won the election (Remember, TARP was done pre-November) they want to play populist games & use it as a vehicle to go after 'overpaid' execs...

3) The banks want out, because they know that accepting the Dems conditions will be disasterous, and fighting the unconstitutional taxation in court will be expensive....

4) Remember, several of the 'big' banks were FORCED (ok 'Strongly Encouraged', by Sec Paulson (who wasn't going to dip into people's paychecks)) to take TARP money... There have been rumblings that one or more of BAC, JPM & WFC will attempt to return some or all of the TARP money now....

TANSTAAFL

It's not just about executive compensation. It's about precedent. This administration and congress has shown they believe it is ok to tak retroactive action when it best suits their reelection chances. Feigning outrage is the hot thing in Washington right now, so the politicians want to show they are "tough on greed". Remember what politicians who are "tough on crime" do? They ban guns. Populist outrage makes politicians do STUPID things with no basis in reality.

Also notice this whole AIG brouhaha has made the bailouts ineffective. The bailout was intended to increase lending (mostly business lending), but now the banks view TARP money as a toxic asset. So instead of using the TARP loans to make loans of their own they are now diverting their resources to paying off TARP. If they are trying to pay off TARP asap, that means no money to make loans with.

So there were banks that were going to increase their loans because of TARP money. Not anymore.

Exactly...

More genius from DC...

As I understand it, every bank that tried to reject TARP was threatened with bank examiners and a CRA review.

Well, the banks asked for it, now they are going to get it whether they want it or not. The govt can't even clean its own house, and now they are going to clean someone elses. Better lube up, because the banks are going to take it in the @$$. Better hold on to your hat, because it is going to get real gamey very soon.

I wonder who is going to bail out the .GOV when they go TU?

I used to work with a guy who used to work for the FSLIC(Fed. Savings & Load Insurance Corp, the defunct quasi-govt counterpart to the FDIC for the savings & load industry) who was in charge of bankrupt Lincoln Savings & Loan. He said those folks brought in 100 people but only 5 of them knew what they were doing, the rest were in it just for the ride.

They get what they deserve.  I have no pity for them.  I don't like it...but whatever.

Place the fucking blame where it belongs.  Stop buying the bullshit.

TXL

Some of us saw this fiasco in the making back in September.  Why people bought into the idea of TARP is beyond me.  Just goes to show  you how powerful government can be if they can scare enough people.

Right out of the Mafia's playbook!  





[Guido]"Whaddaya mean, ya don't needs any protection?  Better think twice about dat, bub!"[/Guido]

CJ
 

This

and so it begins......

Good!  

I like to see a plan come together.  I like to see Obama's plan Fail even more!!!!

We are from the government. We are here to help.