Interesting Banking Info

[GregP]

http://www.upi.com/Emerging_Threats/2009/04/13/Walkers-World-A-tale-of-two-banks/UPI-38011239633827/

-g

[Sea-Dated]

Nice

[smdude]

A good read. Thanks

[waybomb]

Quote-This is not just massive evidence of hoarding of funds by the banks. It also means that the banks are undermining the Obama administration's attempts to stimulate the economy. Just as President Obama pumps $787 billion of deficit spending into the economy, the banks take $771 billion out of it and sock it away in the Fed's vaults. end quote

Ok, so I'm no banker, but I know one in town. Their "regulator" strongly suggested they take 17mm in funds that they did not need nor want. They are a small conservative bank that does not want the govt's fingers in their business any more than possible.

The board wrangled over this.

The thought is if the regulator strongly suggests, you do. They ended up taking 12mm and immediately depositing it.

They did not need it, did not want it, had no borrowers for it, so they deposited it. I bet hundreds of small conservative (solvent) banks did the same thing for the same reasons.

Undermining Obama? Give me a freakin break, he seems to want to undermine us all.

[Tommy Gun]

Quote-
Undermining Obama? Give me a freakin break, he seems to want to undermine us all.

Uh, yes. What is really going on is beyond reasonable comprehension.

[GregP]

Quote-Ok, so I'm no banker, but I know one in town. Their "regulator" strongly suggested they take 17mm in funds that they did not need nor want. They are a small conservative bank that does not want the govt's fingers in their business any more than possible.

The board wrangled over this.

The thought is if the regulator strongly suggests, you do. They ended up taking 12mm and immediately depositing it.

They did not need it, did not want it, had no borrowers for it, so they deposited it. I bet hundreds of small conservative (solvent) banks did the same thing for the same reasons.

So your friends bank submitted a falsified TARP funds request (did it really say "we don't need the money, won't use the money, but want our share anyway"?) but it's not their fault since, after all, they are only responsible for running the bank? Sorry, but your fiend is part of the problem with the current "Big Greed" business environment and belongs in jail. You can still visit him on Thrusdays.

-g

[waybomb]

So your friends bank submitted a falsified TARP funds request (did it really say "we don't need the money, won't use the money, but want our share anyway"?) but it's not their fault since, after all, they are only responsible for running the bank? Sorry, but your fiend is part of the problem with the current "Big Greed" business environment and belongs in jail. You can still visit him on Thrusdays.-g

Look, I said I am no banker. I don't know if it was TARP funds or some other program. The feds wanted them to take money to lend out if needed, and to buy any distressed assets of any local banks. Maybe the feds figured a local bank was going down. I have no clue. This particular bank has their own money to lend, and can get more if needed. Their books show that.

They want to give the money back. The feds want them to lend it. They don't need to. The govt won;t let them give the money back.