Iceberg85 wrote:
I am moderate in my political views, but Obama seemed to have a lot of good ideas, whether they will all work or not is to be debated, but big fan of the big banks paying back the american public that bailed them out "if they have the ability to give out big bonuses. they can pay back the america tax payers that bailed them out."
Also, the republicans did not seem too fond of a lot of his ideas. Any thoughts guys?
I think that was a line designed to stir up the passions (lets get those dirty rotten no good bankers, they make to much money etc...) of economic envy as the banks have been paying back their loans. Was it just about banks or was it about all of the companies the government made loans to?
Quote:
As Banks Repay Bailout Money, U.S. Sees a Profit
Published: August 30, 2009
Nearly a year after the federal rescue of the nation’s biggest banks, taxpayers have begun seeing profits from the hundreds of billions of dollars in aid that many critics thought might never be seen again.
The profits, collected from eight of the biggest banks that have fully repaid their obligations to the government, come to about $4 billion, or the equivalent of about 15 percent annually, according to calculations compiled for The New York Times.
These early returns are by no means a full accounting of the huge financial rescue undertaken by the federal government last year to stabilize teetering banks and other companies.
The government still faces potentially huge long-term losses from its bailouts of the insurance giant American International Group, the mortgage finance companies Fannie Mae and Freddie Mac, and the automakers General Motors and Chrysler. The Treasury Department could also take a hit from its guarantees on billions of dollars of toxic mortgages.
But the mere hint of bailout profits for the nearly year-old Troubled Asset Relief Program has been received as a welcome surprise. It has also spurred hopes that the government could soon get out of the banking business.
http://www.nytimes.com/2009/08/31/busin ... .html?_r=1Quote:
Bank of America says it's paying back $45 billion in government loans
Repayment of $45 billion loan from taxpayers will free bank from extra regulations
By Rick Rothacker
rrothacker@charlotteobserver.comPosted: Thursday, Dec. 03, 2009
Bank of America said Wednesday evening it is set to repay all of its $45 billion in government aid, a step that helps remove the stigma of being a bailout recipient and dials back government scrutiny of its operations.
The Charlotte bank had been eager to pay back the money for months, but it needed the approval of government regulators. The move allows departing chief executive Ken Lewis to remove a major blot on his legacy, and it potentially makes it easier for the company to find his replacement.
Quote:
The government has taken profits of about $1.4 billion on its investment in Goldman Sachs, $1.3 billion on Morgan Stanley and $414 million on American Express. The five other banks that repaid the government — Northern Trust, Bank of New York Mellon, State Street, U.S. Bancorp and BB&T — each brought in $100 million to $334 million in profit.
The figure does not include the roughly $35 million the government has earned from 14 smaller banks that have paid back their loans. The government bought shares in these and many other financial companies last fall, when sinking confidence among investors pushed down many bank stocks to just a few dollars a share. As the banks strengthened and became profitable, the government authorized them to pay back the preferred stock, which had been paying quarterly dividends since October.
http://www.correntewire.com/tarp_banks_ ... me_profits
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