The Shell Game: Banks tap Government fund to repay TARP

[n2doc]

By Todd Wallack
Globe Staff / June 20, 2011

Hundreds of small banks that received US aid after the financial crisis appear to have found a creative way to repay the funds: obtain money from a different government program.

Most of the 627 banks that still hold money from the controversial Troubled Asset Relief Program, or TARP, have filed applications to roll the obligations into the government’s new Small Business Lending Fund, according to Treasury officials and the banks.

That includes at least two Massachusetts banks, Mercantile Capital Corp. in Boston and Central Co-operative Bank in Somerville.

TARP was widely tarred as a bailout for greedy banks, but the $30 billion small business lending program does not carry the same baggage. The new program would let many TARP recipients sharply reduce dividend payments to the government, while no longer facing strict restrictions on executive compensation.

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http://www.boston.com/business/articles/2011/06/20/small_banks_turn_to_us_fund_to_repay_tarp_aid/?p1=News_links

[Mojorabbit]

1. It is like a hydra. nt

[Snoutport]

2. k & r

[HowHasItComeToThis]

3. THE FRAUD NEVER ENDS

LEACHES

[piratefish08]

4. our financial system is completely fucked.

complete failure that is rewarded and enabled by the government.


my hope is gone.

[OneGrassRoot]

5. Do you guys know of corporations here in the US which limit...

executive pay or have some sort of setup, as in European countries, where the CEO can't make more than x times more than the lowest paid employee, or something like that?

Seventh Generation does this (eco-friendly household supply company which has been around forever, out of Vermont, I believe) but I don't know of others.

Do you know of any? Do any of the cooperative or community banks do this, to anyone's knowledge?

Thanks. :)

[City Lights]

6. Off the public dole!

Pull yourselves up by your own bootstraps!

[SammyWinstonJack]

7. Well then...........THANK GOD IT PASSED!

:evilgrin:

[xchrom]

8. Recommend

[nykym]

9. Considering their less than

stellar credit ratings, they did accept "bail out money" the should be denied the conversion and forced to pay back on the original note. Hey FED you do have the note right?

[KurtNYC]

10. so less is available for small businesses?

they got bailed out as "too big too fail" and now they are "small businesses" ?!