Sunday, March 15, 2009

Look for the terms of the TARP money to be cut

It looks like a bunch of banks are belly-aching about the TARP money and it's terms. So they are telling the world, they want to give the money back.

Look at what they are saying:

"It was supposed to be a badge of honor if you were able to get this money, but now it's a badge of honor if you didn't take it, with all the bad publicity it has attracted," said Alan Rothenberg, chairman of 1st Century Bank in Century City.,0,3702302.story?page=1

And some want to give it back.

But a growing number of banks that have received the money now want to give it back.

"The TARP money is tainted and we don't want it," said Jason Korstange, a spokesman for Minnesota-based TCF Financial Corp., which received $361 million and announced this month that it wanted to pay it back.

So give it back. Quit telling us what you want to do, just do it!

What these banks are really doing, is playing "AIG" with Treasury. They are saying they want to give the money back, but they're not.

The real reason behind this bellyaching is the terms, and the scrutiny the TARP money entails.

At least one banker admits that!

Another issue was the cost of the money. The banks had to pay the government 5% interest.

"It was billed as cheap money, but it really wasn't," Rothenberg said.

And these banks don't want the Northern Trust problem. They want their junkets, and bank President's want to join Member's only golf clubs!

So look for the TARP terms to be eased.

Whatever the bankers want, they get, especially under Timid Tim!

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