Banks Repay $68B

BusinessJune 2009 • Views: 27,100

WASHINGTON – President Barack Obama is complimenting banks that are reimbursing taxpayers to the tune of $68 billion in federal bailout assistance.

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79 comments

Ward Cleaver Tue, Jun 9, 2009 11:51:47am

"We don't want your money, Barry!"

- signed,

the banks

LGoPs Tue, Jun 9, 2009 11:52:00am

Do they get a late fee assessed if they paid it back after the billing period?
/

snowcrash Tue, Jun 9, 2009 11:52:07am

That was quick. Makes me question how badly did they need the bailout money.

[deleted] Tue, Jun 9, 2009 11:52:48am

LGoPs Tue, Jun 9, 2009 11:52:49am

The late fee was $14B.........
/ Yikes

IslandLibertarian Tue, Jun 9, 2009 11:52:50am

While going over the paperwork to refinance my condo, I asked my banker if they were involved with any of the "stimulus" money.
He laughed and said, "No, we're a conservative bank."

Ward Cleaver Tue, Jun 9, 2009 11:52:50am

re: #2 LGoPs

Do they get a late fee assessed if they paid it back after the billing period?
/

Then, the harassing phone calls.

FurryOldGuyJeans Tue, Jun 9, 2009 11:52:56am

I guess the banks figured out the attached strings were a bit much.

Still, this is good economic news.

Rednek Tue, Jun 9, 2009 11:53:00am

So, who gets the free toaster-oven?

infdl Tue, Jun 9, 2009 11:53:45am

Could it be that taking that cash has turned out to be so laden with bad juju beans - loss of countrol, crap regulations, etc.?

Ward Cleaver Tue, Jun 9, 2009 11:53:55am

re: #9 Rednek

So, who gets the free toaster-oven?

We all get a share. Sign up soon for an opening, to toast your bagel.

Desert Dog Tue, Jun 9, 2009 11:53:57am

They gave it back, with all the strings still attached

KenJen Tue, Jun 9, 2009 11:54:09am

"Call attention to the slow pace of government spending"...as if that's bad. That used to be a good thing.

Ward Cleaver Tue, Jun 9, 2009 11:54:15am

re: #10 infdl

Could it be that taking that cash has turned out to be so laden with bad juju beans - loss of countrol, crap regulations, etc.?

Dirty money.

Kragar Tue, Jun 9, 2009 11:54:18am

re: #3 snowcrash

That was quick. Makes me question how badly did they need the bailout money.

Many didn't. They were told to take the money as a sign of good will towards the stimulus package, then after they took it, the government started to pile on all sorts of conditions. When the banks first tried to return it, the government said no, they had to keep it and work under the new rules.

Fat Bastard Vegetarian Tue, Jun 9, 2009 11:54:30am

I'll bet that was one happy, happy, happy mortgage burning party!

Probably a cake with Fausting.

Ward Cleaver Tue, Jun 9, 2009 11:54:47am

re: #13 KenJen

"Call attention to the slow pace of government spending"...as if that's bad. That used to be a good thing.

Not in Obamaworld.

Flyers1974 Tue, Jun 9, 2009 11:55:20am

re: #3 snowcrash

That was quick. Makes me question how badly did they need the bailout money.

I gotta believe pretty badly, otherwise Obama/Congress wouldn't have done this - bailing out the banks was not popular with anyone left or right(as opposed to GM where there certainly was an immediate political benefit for Obama.)

subsailor68 Tue, Jun 9, 2009 11:55:43am

President Barack Obama is complimenting banks that are reimbursing taxpayers to the tune of $68 billion in federal bailout assistance.

Uh, Mr. President, where's my check? What do you mean you've decided to keep it? That sucks.

Ward Cleaver Tue, Jun 9, 2009 11:55:43am

re: #15 Kragar (Proud to be Kafir)

Many didn't. They were told to take the money as a sign of good will towards the stimulus package, then after they took it, the government started to pile on all sorts of conditions. When the banks first tried to return it, the government said no, they had to keep it and work under the new rules.

They could run commercials, with bankers waving wads of cash, saying, "I got mine!"

Ward Cleaver Tue, Jun 9, 2009 11:56:22am

re: #19 subsailor68

President Barack Obama is complimenting banks that are reimbursing taxpayers to the tune of $68 billion in federal bailout assistance.

Uh, Mr. President, where's my check? What do you mean you've decided to keep it? That sucks.

He's donated it to ACORN, in your name.

subsailor68 Tue, Jun 9, 2009 11:56:50am

re: #21 Ward Cleaver

He's donated it to ACORN, in your name.

So that's where that cool bumper sticker came from!

;-)

Flyers1974 Tue, Jun 9, 2009 11:57:05am

re: #20 Ward Cleaver

I bet we will see this commercial in future Republican campaign ads.

brookly red Tue, Jun 9, 2009 11:57:34am

Oh great! now we can put that money in trust for social security, right?

FurryOldGuyJeans Tue, Jun 9, 2009 11:57:51am

re: #13 KenJen

"Call attention to the slow pace of government spending"...as if that's bad. That used to be a good thing.

Don't cherry-pick next time.

Appearing at a White House event to call attention to slow the pace of government spending, Obama stressed that the deal to repay this sum "is not a sign that our troubles are over — far from it."

Looks like even Obama is getting a clue about how bad government spending has gotten.

JustABill Tue, Jun 9, 2009 11:57:53am

re: #21 Ward Cleaver

He's donated it to ACORN, in your name.

I wonder if ACORN donation will get me a tax deduction?

MrSilverDragon Tue, Jun 9, 2009 11:58:14am

So, if we're talking $68B, divided by 300M... we'll say around $227 a person...

So, if I approximate the deficit to be, say, $1.5T, and divide that by 300M, that's $5000 a person.

Great! I only have to pay $4773 for my share... for now.

Why do I not feel better about this?

KenJen Tue, Jun 9, 2009 11:58:14am

Well, it's nice that their allowing the banks to pay "us" back.

Fat Bastard Vegetarian Tue, Jun 9, 2009 11:58:27am

re: #24 brookly red

Oh. Sorry. We're giving to to California.

lawhawk Tue, Jun 9, 2009 11:58:40am

re: #19 subsailor68

President Barack Obama is complimenting banks that are reimbursing taxpayers to the tune of $68 billion in federal bailout assistance.

Uh, Mr. President, where's my check? What do you mean you've decided to keep it? That sucks.

The TARP money is like a revolving line of credit. Or at least that is how the Administration is treating it in this case.

They didn't want the banks to repay, because of the claim that they might need it down the road (a spurious claim in any event and one that shouldn't prevent the repayment to exit the program).

These banks wanted out, and now have that opportunity. They'll take it as will other smaller banks.

Remember, these were among the banks forced to enter the program to remove the stigma of getting TARP funding in the first place.

Desert Dog Tue, Jun 9, 2009 11:58:46am

These bankers did not want to catch Citi-Fever.....I hear it's lethal.

Tresury stake in Citi to rise up to 36%

kansas Tue, Jun 9, 2009 11:59:11am

I'll bet that created or saved 150,000 jobs......or not.

JammieWearingFool Tue, Jun 9, 2009 11:59:31am

$68 billion, payable directly to our ACORN overlords.

Rednek Tue, Jun 9, 2009 11:59:51am

So sad.

GM's stock price: N/A

NonNativeTexan Tue, Jun 9, 2009 11:59:56am

Ironic how so many executives voted for Obama's redistribution of
wealth agenda, only to discover, the wealth that would be redistributed
was their own.

FurryOldGuyJeans Tue, Jun 9, 2009 12:00:37pm

re: #30 lawhawk

The TARP money is like a revolving line of credit. Or at least that is how the Administration is treating it in this case.

They didn't want the banks to repay, because of the claim that they might need it down the road (a spurious claim in any event and one that shouldn't prevent the repayment to exit the program).

These banks wanted out, and now have that opportunity. They'll take it as will other smaller banks.

Remember, these were among the banks forced to enter the program to remove the stigma of getting TARP funding in the first place.

This is money laundering done by the Federal Government. This whole bailout fiasco stinks like month old fish.

Spare O'Lake Tue, Jun 9, 2009 12:01:40pm

Boy, if they're repaying cheap bailout money early, then they must be getting ready to REALLY stick it to the consumer.

Fat Bastard Vegetarian Tue, Jun 9, 2009 12:01:51pm

re: #34 Rednek

Only sad in the terms of what was once great.

We've been watching watching the demise since the early 70s. They just had a large pile of money to burn through...took a while.

kansas Tue, Jun 9, 2009 12:02:13pm

re: #34 Rednek

So sad.

GM's stock price: N/A

[Link: money.cnn.com...]

snowcrash Tue, Jun 9, 2009 12:02:17pm

"The government will continue to hold warrants in the 10 banks, allowing it to purchase shares of their common stock. Administration officials say they have no intention to exercise the warrants, which would give the government ownership stakes in the banks. But negotiations over how much the banks should pay the government to tear up the warrants -- which analysts estimate are worth about $5 billion -- have yet to find common ground."
From the Washington Post. How much influence will holding warrants give the gov't in the operations of the banks?

Ben Hur Tue, Jun 9, 2009 12:02:30pm

Market driven?

AG in Houston Tue, Jun 9, 2009 12:02:42pm

re: #3 snowcrash

I assure you they needed it.

Unfortunately, they will need it back in about 12 months.

I hope I am wrong.

FurryOldGuyJeans Tue, Jun 9, 2009 12:03:28pm

re: #40 snowcrash

"The government will continue to hold warrants in the 10 banks, allowing it to purchase shares of their common stock. Administration officials say they have no intention to exercise the warrants, which would give the government ownership stakes in the banks. But negotiations over how much the banks should pay the government to tear up the warrants -- which analysts estimate are worth about $5 billion -- have yet to find common ground."
From the Washington Post. How much influence will holding warrants give the gov't in the operations of the banks?

Holding a gun to someone's head doesn't influence them, does it?

Randall Gross Tue, Jun 9, 2009 12:03:48pm

More of this will come back too. Where the bailout money will really get eaten up is in local and state gov'ts and the two car companies.

Cato the Elder Tue, Jun 9, 2009 12:04:01pm

Any good news happens despite Obama.

Any bad news is because of him.

It's elementary.

To some.

Jack Burton Tue, Jun 9, 2009 12:04:40pm

re: #34 Rednek

So sad.

GM's stock price: N/A

Since it's in BK, the symbol changes and I guess it was booted off of the NYSE.

GMGMQ

[deleted] Tue, Jun 9, 2009 12:04:45pm

quickjustice Tue, Jun 9, 2009 12:05:06pm

Unfortunately, this is window-dressing. The money's being repaid to evade the compensation caps that the federal government promised on those in the banking industry who took TARP money.

Another place to look is the billions of taxpayer dollars infused into AIG. AIG insured the subprime mortgages, and after its takeover paid out the federal rescue money to insured banks. These banks, in addition to foreign banks in Europe and China, received billions in AIG rescue money, and never will repay it.

There are many other ways federal regulators have manipulated the banking system to make banking profitable. One is lowering the cost of money from the Federal Reserve to banks to records lows.

This is a gigantic shell game. You're only focusing on one of the shells.

Buck Tue, Jun 9, 2009 12:05:07pm

I wonder if the Chinese will take an early payment...

Cause we owe it to THEM!

It is not our money... it was borrowed form the chinese. Now I just hope the government applies it to that debt.

JustABill Tue, Jun 9, 2009 12:05:08pm

re: #34 Rednek

So sad.

GM's stock price: N/A

Actually, what your looking for is here. I think it was delisted and thus lost its nice two letter ticker symbol

Rednek Tue, Jun 9, 2009 12:05:20pm

re: #39 kansas

[Link: money.cnn.com...]

How interesting. Just ditched the old ticker symbol?

KenJen Tue, Jun 9, 2009 12:05:48pm

re: #25 FurryOldGuyJeans

Looks like even Obama is getting a clue about how bad government spending has gotten.

I read it as he wants to speed up govt. spending. Guess I don't know how to read this guy.

Rednek Tue, Jun 9, 2009 12:06:38pm

re: #46 ArchangelMichael

Since it's in BK, the symbol changes and I guess it was booted off of the NYSE.

GMGMQ

The new symbol should have been GMBHO.

KingKenrod Tue, Jun 9, 2009 12:07:08pm

The banks did not need the money but took it because the government insisted that all large banks get lumped into the same risk pool. This is so the healthy banks would not steal business from weaker banks (like Citigroup) making the recovery of weaker banks impossible.

Obama was not going to let the banks give the money back, but Congress has promised legislation to continue strict Treasury oversight of financial institutions (including executive pay levels) whether they give the money back or not. Since Obama got what he wanted, he wants the money back.

Buck Tue, Jun 9, 2009 12:07:14pm

re: #46 ArchangelMichael

Since it's in BK, the symbol changes and I guess it was booted off of the NYSE.

GMGMQ

Ya, and up 22% today so far.

kansas Tue, Jun 9, 2009 12:09:21pm

re: #45 Cato the Elder

Any good news happens despite Obama.

Any bad news is because of him.

It's elementary.

To some.

Yeah, all that good news is just overwhelming. /

Jack Burton Tue, Jun 9, 2009 12:14:03pm

re: #55 Buck

Ya, and up 22% today so far.

It's tripled since it started trading again. I should have bought some.

sattv4u2 Tue, Jun 9, 2009 12:14:56pm

TARP worked. It cushioned the fall and let the banks stabilze. Now the task is for them NOT to do what got them there in the first place. Responsible lending practices that have worked for decades and across politicical philosophies must be the norm

Oh and by the way, thank you President Bush and your team for coming up with this. Wiithout it, it would have been much much worse

Killian Bundy Tue, Jun 9, 2009 12:15:31pm

re: #34 Rednek

So sad.

GM's stock price: N/A

GMGMQ.PK

/it trades on the pink sheets now

Jack Burton Tue, Jun 9, 2009 12:18:05pm

re: #58 sattv4u2

Now the task is for them NOT to do what got them there in the first place. Responsible lending practices that have worked for decades and across politicical philosophies must be the norm

Responsible lending? That's RACIST!

/Acorn lawyers

gnargtharst Tue, Jun 9, 2009 12:21:42pm

What a double-speak fest:

"...people are beginning to see "an initial return on a few of these investments."

Um, *investments* are *voluntary*. "Expropriation" is what he meant. And whether the payments constitutes a *return" depends on whether the banks used the money productively, or whether the money is some of the money stronger banks are deparately trying to return to cut the government strings attached to the "loans" they were forced to accept.

I wonder which it is? Hmmm, here's a clue: "The Treasury Department did not identify the banks involved in the repayment."

Ah.

"...But it did say they had been approved to send back money..."

Get that? Government beaurucrats have "approved" repaying these "loans".

Socialism doesn't work, spins to the contrary notwithstanding.

sffilk Tue, Jun 9, 2009 12:25:28pm

It's a start................. so it's a good thing, isn't it?

P. Aaron Tue, Jun 9, 2009 12:26:12pm

A small peice of economic good news(?!)

More like: gettin' while the gettin's good.

Many of the banks were FORCED to take Stimulus money they never wanted.

Good News? Really.

Fat Bastard Vegetarian Tue, Jun 9, 2009 12:29:52pm

re: #16 Fat Bastard Vegetarian

Dang. I thought that was really clever. Thanks Harry. Thanks Ward.

quickjustice Tue, Jun 9, 2009 12:32:13pm

re: #58 sattv4u2

You're wrong. This isn't over yet. The subprime mortgages haven't been cleaned out of the system yet. Until that happens, no one can say whether TARP "worked". And until that happens, a real recovery can't start.

Obama's failure to deal with the subprimes decisively is the best evidence he doesn't want an economic recovery.

_RememberTonyC Tue, Jun 9, 2009 12:35:52pm

I guess the word "kumbaya," when translated into pakistani means "fuckyou."

/ please don't tell me there's no such language as pakistani

_RememberTonyC Tue, Jun 9, 2009 12:36:42pm

re: #66 _RememberTonyC

I guess the word "kumbaya," when translated into pakistani means "fuckyou."

/ please don't tell me there's no such language as pakistani

oops ... this was intended for the other thread ... sorry

Rexatosis Tue, Jun 9, 2009 12:37:17pm

This is a small portion of the TARP, these banks were healthy to begin with, it is much ado about nothing with regard to the improvement or lack thereof in the financial sector. It is posturing for the news cycle.

weimdog02 Tue, Jun 9, 2009 12:57:15pm

Once the TARP funds are paid back, bonuses will be paid and then the fraudsters will short the same market they just ran up.

U6 30% "funemployment" here we come.

baier Tue, Jun 9, 2009 1:30:11pm

Some companies, like American Express, became a holding company just so they could take the money. So it's not accurate to say the money was forced on every company.
TARP did not work. These are the healthiest companies repaying the money. The failures will still fail, but will limp along for a few years, making the economy less and less productive, until they finally die...all on our dollar.

SixDegrees Tue, Jun 9, 2009 1:58:59pm

re: #10 infdl

Could it be that taking that cash has turned out to be so laden with bad juju beans - loss of countrol, crap regulations, etc.?

That's certainly one motivation. A potentially huge problem arises, though, if banks that actually need to be shored up are returning money they really ought to keep simply because of all that bad juju attached to it. The end result could wind up being more bank closures rather than less.

Reluctant Democrat Tue, Jun 9, 2009 2:24:41pm

Tomorrow's headline: "Obama Finds Money for Health Care Rehaul."

Inzax Tue, Jun 9, 2009 2:35:38pm

Many of these banks have been trying to pay back these loans for months. The federal government would not let them pay back the loans (which some did not want in the first place.)

Specifically, USBank tried to refuse the bailout money. They were forced to take it AND pay interest on the loan. When they tried to pay it back they were told it would give them an unfair market advantage by making them look healthier than other banks. The money sat in an account unused.

I work with these guys (USBank) everyday. Their frustration with this situation has bread nothing but contempt for the amateur abilities of this administrations financial representatives.

Truth Stick Tue, Jun 9, 2009 3:03:40pm

re: #73 Inzax

My USbankers were in to see me today, and they are giddy that they can finally give back the money that was forced on them. They didn't have much good to say about the gov't

MPH Tue, Jun 9, 2009 3:45:25pm

A lot of this is tax payer dollars being cycled back and forth. Remember that 170 odd billion that went to the AIG bailout --- and was funneled out the other end in the form of insurance payments direct to Goldman Sachs, Deutsche Bank, Merrill Lynch, Morgan Stanley, Wachovia, Bank of America, etc...?

Altermite Tue, Jun 9, 2009 4:14:30pm

re: #25 FurryOldGuyJeans

Looks like even Obama is getting a clue about how bad government spending has gotten.

I'm of the opinion that his real danger came from naievity/inexperience, more than any of the various things that were shouted up by the GOP. He's not stupid, he just didn't know anything much while entering office. He may be learning it now, which could make him halfway competent. Wonder if his popularity will last if he does.

Dan G. Tue, Jun 9, 2009 6:30:47pm

Returning unwanted TARP funds that were forced on them is "reimbursing the taxpayer"? That's some ballsy spin.

Rich H Tue, Jun 9, 2009 7:04:29pm

I heard that Geitner wants to use the returned money to "help" other banks rather than reduce the deficit.

If at first you don't fail, try, try again.

Macker Tue, Jun 9, 2009 8:29:27pm

And no one here mentioned that two banks which were NOT allowed to repay any portion of TARP today were Citibank and Bank of America.

Spy Mode Auto

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