(snippet)
What Bank of America has done is simply replace one form of taxpayer sponsored capital (TARP) with equity and another form of taxpayer sponsored capital--loans from the Fed. Those loans carry super-low interest rates, so they'll help Bank of America make more money at taxpayer expense. Those loans also, importantly, come with NONE of the restrictions that TARP does.
In case you're not following exactly what happened here, let us explain:
Bank of America raised $19 billion of new equity. It paid the government $45 billion of TARP funds back. To make up the difference, it borrowed $26 billion of new funds from the Fed (at a subsidized rate, no less).
And taxpayers are on the hook every bit as much with the Fed loans to Bank of America as they were for the TARP capital. The only thing that has changed is that taxpayers don't have any control anymore. Bank of America can now take that money and do whatever it wants with it, including paying out tremendous bonuses for making stupid loans.
And, god forbid, if Bank of America isn't healthy and gets itself into trouble again, taxpayers will be right there to bail it out again.
Because this is America, land of bailouts. And TARP-free Bank of America is still too big to fail.*
LINK HERE
Bob Chapman: A Depression Not a Recession
LINK HERE
Prepare for the Great Depression.
Survival Seeds
Yup, and you won't hear the clown stock pushers on CNBC saying anything like that.
ReplyDeleteAnd you can bet the bank, like all the rest are sure as hell not gona give you any interest rate increase on any savings, they need all the bucks to pay those "retention bonus'"
Seems I remember Bob Chapman saying that Banks would start having to give back TARP money and we now see Bank of America doing it.
ReplyDeleteBob also said something about Bank of America sometime not insuring "interest bearing accounts". Can anyone verify that?
I knew these greedy snakes wouldn't be on the up and up about giving back $$$.
ReplyDeleteThe PR they are getting for playing this shell game will really work in their favor though. The banker media will repeat the good parts of this story over and over again.
Sorry, the Federal Reserve is a private central bank. They are printing money out of thin air. Taxpayers are not on the hook.
ReplyDelete