Fed to Repay Fed for Bank Bailouts

[JBeukema]

Some banks will use money from a government program aimed at increasing small business loans to repay their federal bailouts, according to the Treasury Department official who oversees the bailout program.
In a brief interview, Acting Assistant Secretary Timothy G. Massad said Wednesday that Treasury has yet to grant approval to any banks seeking to use money from the Small Business Lending Fund to repay their bailouts, "but they will." Last year's law creating the lending program lets banks use money from that program to repay their bailouts.
"I do expect them to approve the applications of many TARP recipients to refinance their loans under the small business lending fund," he said, using the acronym for the Troubled Asset Relief Program, the bailout's formal name.

Placeropolis.com

 

[Quantum Windbag]

No doubt someone will use the loans being repayed as proof of what a good idea the bailout was.

 

[Brutus]

No doubt someone will use the loans being repayed as proof of what a good idea the bailout was.

Brutus: the bailout was obviously a better idea than the alternative: worldwide depression

 

[Quantum Windbag]

No doubt someone will use the loans being repayed as proof of what a good idea the bailout was.

Brutus: the bailout was obviously a better idea than the alternative: worldwide depression

Can you prove we would have had worldwide depression if we had not bailed out the banks?

 

[Trajan]

Some banks will use money from a government program aimed at increasing small business loans to repay their federal bailouts, according to the Treasury Department official who oversees the bailout program.
In a brief interview, Acting Assistant Secretary Timothy G. Massad said Wednesday that Treasury has yet to grant approval to any banks seeking to use money from the Small Business Lending Fund to repay their bailouts, "but they will." Last year's law creating the lending program lets banks use money from that program to repay their bailouts.
"I do expect them to approve the applications of many TARP recipients to refinance their loans under the small business lending fund," he said, using the acronym for the Troubled Asset Relief Program, the bailout's formal name.

Placeropolis.com

hey, why not? GM did same....

 

[william the wie]

No doubt someone will use the loans being repayed as proof of what a good idea the bailout was.

Brutus: the bailout was obviously a better idea than the alternative: worldwide depression

but has that been avoided or simply put off at compound interest?

 

[waltky]

Here we go again...

AIG slips back into the red
May 5, 2011 -- AIG reported a first quarter loss Thursday, moving the insurer back into the red after the bailout recipient showed signs of life with a strong final quarter to close out 2010.

AIG reported a loss from continuing operations of $1.41 per share for the first three months of the year, compared to a profit of $2.16 per share over the same period a year ago. For U.S. taxpayers, the loss is bad news. Here's why: The Treasury Department owns a 92% stake in AIG, the result of a 2008 bailout of the too big to fail insurer.

In 2008, the giant insurer struggled under the weight of credit default swaps issued by its Financial Products division before ending up on the receiving end of a $180 billion lifeline extended by the Feds. AIG has returned a large chunk of that to the Treasury, raising money through asset sales. But Treasury still has $47.5 billion in cash invested in AIG through the insurer's common stock.

Due to a plunging stock price that has lost 46% of its value since the start of the year, that taxpayer investment is in danger of slipping into the red. The breakeven stock price for that investment is around $29, just a few dollars below where the stock has been trading in recent weeks.

Source

 

[LordBrownTrout]

I was fearing this, hoping it would wait a bit longer but this one could be a doozer. I hope I'm wrong though.

 

[Norman]

No doubt someone will use the loans being repayed as proof of what a good idea the bailout was.

Brutus: the bailout was obviously a better idea than the alternative: worldwide depression

Can you prove we would have had worldwide depression if we had not bailed out the banks?

No he can't. Impossible.

What will be proven though is that you will have one now

 

[Brutus]

]

Can you prove we would have had worldwide depression if we had not bailed out the banks?

dow went to 6500 after lehman failed and was bailed out. If all of Wall Street had gone every stock, bond, saving account, mortgage, checking account, pension would have been frozen and worthless. THe only way to solve would be government intervention but at that point it would have been 1000 times worse than it was.

]

What will be proven though is that you will have one now

any reason to think that?

 

[Brutus]

No doubt someone will use the loans being repayed as proof of what a good idea the bailout was.

Brutus: the bailout was obviously a better idea than the alternative: worldwide depression

but has that been avoided or simply put off at compound interest?

do you have any idea what you are talking about. What exactly was put off at compound interest??

 

[Toro]

No doubt someone will use the loans being repayed as proof of what a good idea the bailout was.

Brutus: the bailout was obviously a better idea than the alternative: worldwide depression

I agree.

I hate hate hate the bailouts, but the alternative would have been way worse.