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Obama Won’t Let Banks Give TARP $ Back

From the Wall Street Journal:

Geithner Says Repayments Depend on Overall Credit Needs


April 21, 2009

WASHINGTON — The decision to allow U.S. banks to repay federal government funds will largely depend on the credit needs of the broader economy, Treasury Secretary Timothy Geithner said Tuesday.

Mr. Geithner, in an appearance before an oversight panel on Capitol Hill, said the Treasury welcomes some banks repaying funds from the $700 billion Troubled Asset Relief Program. Such actions would help "differentiate" the health of various firms.

When making the decision, however, Mr. Geithner said federal regulators will look at whether an individual bank’s repayment would result in a reduction in the overall credit available in the economy.

"My basic obligation is to make sure the system as a whole…has the ability to provide the credit that recovery requires," Mr. Geithner said, calling it "the ultimate test."

A number of executives at large and small banks have said they want to repay government aid, in part to avoid what they see as onerous executive compensation restrictions. Despite those public pronouncements, however, only a handful of smaller firms have yet to be approved to pay back their government aid

So Mr. Geithner won’t let the banks give the TARP money back. Why is that?

Because Mr. Obama wants to own and control these banks.

That is always what this has been about. Not about ‘saving capitalism.’

And Chavez and Ortega can only look on in envy.

By the way, why were Obama’s Brownshirts, Code Pink, once again allowed into these hearings?

Because it’s all about creating a circus. A feeling of crisis.

This article was posted by Steve on Tuesday, April 21st, 2009. Comments are currently closed.

14 Responses to “Obama Won’t Let Banks Give TARP $ Back”

  1. Right of the People says:

    Now that we have Government Motors and soon US Chrysler, the banks are next. It must really piss off Barry and his handlers that some states like South Carolina and Texas told him, “No thanks, we don’t need your stinking money!” This reminds me of those car loans they were putting out in the 70’s and the 80’s, I think it was GMAC that if you tried to pay it off before the full term was up, they charged you some outrageous fee, probably the entire interest amount. I’m not sure because I never took one. God help us all. Lock and load, the revolution’s coming sooner than you think. The tea parties are a nice start but we need more.


  2. proreason says:

    Like our greedy banks, the residents of East Berlin and all of Eastern Europe, once embraced by the Socialist Utopia, never had the slightest desire to leave the generous bosum of the social paradise.

    And for those few who momentarilly lost sight of the the superiority of the worker’s nirvana, a wall here and a machine gun nest there served as gentle reminders of the decadence they were contemplating joining.

  3. Douglas says:


    I’ve owned stock in TCF bank since they went public. I’ve been quietly buying stock recently. A hundred shares here, a hundred shares there. I’ve met Bill Cooper and I know that bank doesn’t make loans to deadbeats. They signed up for TARP under Bush when it was supposed to be a sign that a bank was healthy and now they’re trying to extract themselves from Obama’s tar baby.

    Of course Obama wants to keep control of the healthy banks. What’s the point of nationalizing a failed bank?

    And yes, I’m really annoyed, but I’m pretty sure that TCF will eventually pull themselves out of this.

    • proreason says:

      Douglas…..here’s the rub, and it applies not just to TCF bank, but to every single corporation in the world.

      If a thug like Obama can come along and willy nilly fire executives, force loans, give money or take money away; and since he has made it 100% clear that, although he is “in favor” of capitalism, he and only he will be saying how much profit any company can make………what makes you or any investor think that you will be able to make money, unless you know for an absolute fact that the business you are investing in has prostrated itself at the Messiah’s feet.

      Anybody who thinks it will be business as usual in a few months or years is very foolish.

      Another way to think about it is even simpler…….stock market gains, ultimately, are linked to profits…..do you think these thugs are going to allow profits when they have their own constituencies to pay off? not to speak of a national debt they have tripled in 90 days.

    • Petronius says:

      Sound advice, PR. The only safe course of action for investors in these circumstances is to be a seller of US financials (and other US stocks and corporate bonds) on any rally. Avoid the markets until there has been a regime change, and until the trillions of dollars in new spending and the inevitable inflation has worked its way through the economy. Hard times are coming, but even if the markets should recover, The Bama is ready to impose increased taxes on your capital gains and dividends, making the risk to your capital unacceptable. Recently The Bama informed the banks that he expects them to use the TARP money (capital) for loans to the poor and disadvantaged borrowers. The news didn’t get much play in the MSM, maybe because it is precisely this policy that got us into the subprime meltdown in the first place. As you say, The Bama has constituencies to pay off. The economy, the markets, and the rules of the game have changed drastically, and perhaps permanently, but the Democrat Party policy remains the same. In the meantime, the only sensible response for capitalists is an “Atlas Shrugged” strategy, and saavy investors would be better off buying guns & ammo, physical gold and silver, and keeping some cash in a satchel and a foreign bank account.

    • Douglas says:

      I myself cannot support an “Atlas Shrugged” strategy. That only makes things worse for everyone and it punishes companies that are trying to do right. So on a case by case basis, I’m trying to put my dollars into companies that are well managed don’t take stupid risks and don’t have their hand out to the government. Yeah, that means small community banks who said no to TARP, it means machine tool companies that will have to make the equipment for other companies when the economy does pick up.

      I’m not in the market for the next week or even the next year. I’m in there with a 20 year horizon and I’m making the assumption that the US will sober up at some point. It did after the 30s and after the Carter years and in 30 years, this hangover will have been forgotten and things will be getting out of control again.

      Yes, I’ll get jerked around as the Obama admin changes the rules on a day by day basis but the underlying value will still be there.

    • proreason says:

      “It did after the 30s and after the Carter years”

      Look at the history of the market in the 30’s and 70’s, and other times of deep economic trouble. There have been at least 3 and possibly 4 times in US history where the market failed to beat inflation for a decade. (It has been worse in other countries. You might examine the markets in Russia around 1915 to 1925, just as one example.)

      And those times of trouble in the U.S. were NOTHING compared to what The Moron has in mind.

      Yes, we all hope, pray, and intend that he doesn’t succeed, but personally, I find the risk unacceptable. Douglas is fallling into the trap that they want him to fall into, which is that they want us to think that “it is nothing out of the ordinary”. Well, it’s way way way out of the ordinary, imho.

      Rush said it all today in the clearest possible fashion although he wasn’t specifically addressing the markets. A lady asked him what is driving the lunatics. Rush didn’t have enough time to answer in depth, so he spoke the truth in one word.


  4. wirenut says:

    Off topic but , Code Pink stays in this hearing and the clown guy gets the boot at the U.N. racism conference during
    nut-jobs rant . What’s up with that?

  5. VMAN says:

    The thing that is soooooo rich is that these thugs think they can do everything better than the people who actually do it. They’re better at banking, building cars, real estate, energy production. Why there’s nothing these guys can’t screw up, I mean, can’t do.

    • Rusty Shackleford says:

      Again, a very astute observation, VMAN.

      Actually, it will be quite funny to watch as the months progress and GM produces “The Homer”..if you remember that episode of “The Simpsons” where Homer gets to design a car. Of course, it’s a complete failure.

      But yeah, the people who are constantly pointing the fingers at those who allegedly “do it wrong” and I can say with complete certainty how much worse it will all get. Liberals make great critics. But when asked how they would do it differently they ALWAYS struggle to find an answer. Especially if you present them with the logical, practical side of things. But…they will throw caution to the wind and create several multi-headed monsters that cannot be killed very easily.

      One reason will be because of all the bureaucracy that they will create. Heck, if one is stupid enough to go to a GM dealership the red tape to just test drive a car will be enough to make one not want to buy it.
      Customer: Hi, I’d like to see a brochure on the 2010 models, please

      Car Salesbureaucrat: Very well, we will need you to fill out this form.

      Customer: Why?

      CS: So we can best assess your driving needs and show you the best car we think you should have

      C: But I like that one

      CS: You can’t have that one

      C: Why not?

      CS: It’s for special needs families only…are you a special needs family?

      C: No, I live alone

      CS: Then you can look at and MAYBE test drive our new microdot…

      C: Microdot?

      CS: Yes, the 2010 Microdot…goes from 0-60 in two days and uses no petroleum products

      C: But I want a car

      CS: It is a car

      C: That? That’s a bicycle with a plastic shell around it

      CS: Not all of them come with shells, they cost extra.

      And on and on. You can see how much fun it will be to shop at GM. Not.

    • pdsand says:

      They don’t struggle to find an answer, they have a canned answer that goes something like, ‘we need to bring everybody together to sit down at the table and find a solution that works best for everybody involved’. It’s their answer to everything. Of course it’s also moronic.

  6. 12 Gauge Rage says:

    It’s simple, if you don’t owe anything to anybody then they can’t lord it over you. If you pay off your loans in full it really ticks off the lender who was hoping to make money over your debt.

  7. gipper says:

    Code Pink protestors:

    “Give Us Our $$$$$ Back”

    Careful. I assume you’re talking about giving American taxpayer money back, but that could also be interpreted as wanting Soros’ money back from Obama.

    “Where Is Our Money?”

    When you’re done with your fake protest your john Mr. Soros will compensate you for services rendered.

  8. jrmcdonald says:

    I recommend an ‘end run’ to get Obama out of their bed- Chapt. 11. Put the funds owned to the Government into an escrow account and do the Atlas Shrugged thing.

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