It is just “government loans” to the banks…or is it about control?


How anyone can now defend Obama’s “private industry takeover” policy as anything but just that is entirely political, dishonest and/or ignorant at this point.

I, for one, am sick to death of Obama and his advisers feigning concern over the economy, banks, and industry while they pick up control of it all piece-by-piece.

Last week they fired GM’s CEO (and, barely reported, replaced the chairman of the board of GM).

Now Obama and his administration are refusing to allow large banks to repay or give back the money loaned to them through TARP.  One may ask “WHY?” considering that the money is taxpayer and money and our government should be happy to get it back….they were just loans remember?

I heard about this the other day, but now again…..from the Wall Street Journal:

I really thought the administration would welcome the return of bank bailout money. Some $340 million in TARP cash flowed back this week from four small banks in Louisiana, New York, Indiana and California. This isn’t much when we routinely talk in trillions, but clearly that money has not been wasted or otherwise sunk down Wall Street’s black hole. So why no cheering as the cash comes back?

My answer: The government wants to control the banks, just as it now controls GM and Chrysler, and will surely control the health industry in the not-too-distant future. Keeping them TARP-stuffed is the key to control. And for this intensely political president, mere influence is not enough. The White House wants to tell ’em what to do. Control. Direct. Command…..

And

Under the Bush team a prominent and profitable bank, under threat of a damaging public audit, was forced to accept less than $1 billion of TARP money. The government insisted on buying a new class of preferred stock which gave it a tiny, minority position. The money flowed to the bank. Arguably, back then, the Bush administration was acting for purely economic reasons. It wanted to recapitalize the banks to halt a financial panic.

Fast forward to today, and that same bank is begging to give the money back. The chairman offers to write a check, now, with interest. He’s been sitting on the cash for months and has felt the dead hand of government threatening to run his business and dictate pay scales. He sees the writing on the wall and he wants out. But the Obama team says no, since unlike the smaller banks that gave their TARP money back, this bank is far more prominent. The bank has also been threatened with “adverse” consequences if its chairman persists. That’s politics talking, not economics.

As is with most other of Obama’s words vs. actions….Obama pretends to care about the financial crisis, while he uses his Chief of Staff’s plan to do overlook the crisis and use it as an excuse for more control of our economic system, among other things.

In a week that has seen Obama bowing to kings, declaring a US reduction in weapons, appeasing Socialist Europe with an agreement to global regulation, we are not only losing our freedoms from within our own country but our influence for freedom and good in the world….all in 3 months time.

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7 Responses

  1. SRT:
    When more than 50% of the population does not pay taxes it elects candidates who advocate no taxes for them.
    This majority will do anything to ensure it can suck at the government’s tit not realizing that the business class which actually produces the milk will eventually not be able to keep up with the government’s demand on its taxes.
    Socialists, such as Obama and his ilk, will use every trick in the book to squeeze as much revenue from the business class not realizing that thy are killing the golden goose (business) which produces the golden eggs.
    Obama views banks as part of the business class which makes too much money. He wants to control its revenues, salaries, and bonuses.
    Someone a lot more eloquent than I said that Democrats want to kill the golden goose while republicans want to ensure it produces more golden eggs…
    Happy Easter!
    Cheers!

  2. thanks, your article is very informative.

  3. 5 banks repay $353M in bailout funds

    The Associated Press
    3:30 p.m. April 2, 2009

    WASHINGTON — Five banks have repaid millions of dollars they received from the government’s $700 billion financial bailout pot, the Obama administration said Thursday.

    The Treasury Department, which oversees the bailout program, said the banks returned a total of $353 million.

    The banks are: Iberiabank Corp. of Lafayette, La.; Bank of Marin Bancorp of Novato, Calif.; Old National Bancorp. of Evansville, Ind.; Signature Bank of New York; and Centra Financial Holdings Inc. of Morgantown, W.Va.

    http://www3.signonsandiego.com/stories/2009/apr/02/
    bank-rescue-040209/

  4. http://www3.signonsandiego.com/stories/2009/apr/02/bank-rescue-040209/

  5. GBS – The article references the small banks that have been allowed to return money, but apparently at least one large one has been denied the chance to pay it back.

  6. I understand…I’m just not into anecdotes shrouded by anonymity. This isn’t news…it’s rumor.

    If there is indeed a major bank trying to repay TARP funds and they otherwise meet FDIC and other existing federal regulatory requirements, then that CEO should be shouting from the mountaintops. If he or his company is being threatened, then he should have the courage to spotlight those issuing the threats.

  7. First they came for the cash under the matress, but I did not hoard cash under the mattress.

    Next they came for the gold, but I was too poor to have gold anyway.

    Now they have come for the money in our checkings and saving accounts, …..and I have no duly elected representatives

    Do you think it’s time for Ron Paul for President yet!!!

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