Banksters start up a new scam

[marmar]

via Dollars & Sense:



Friday, July 10, 2009


New Bank Scam: Buy Discount TARP Warrants
by Dollars and Sense


The federal panel investigating the TARP bank bailout has announced that nearly a dozen banks have been buying back government-issued warrants at a steep discount from their face value. Banks that received emergency government funding were required to give the government warrants to purchase the company's stock at a certain price in the future. The banks are now buying back these warrants at only two-thirds of their face value. So far, the transactions have resulted in a loss of $10 million in revenue to taxpayers.

Some on the panel are considering a proposal to mandate the sale of the warrants on the open market to maximize the benefit to taxpayers.

Link to story in the Wall Street Journal.



http://www.dollarsandsense.org/blog/2009/07/new-bank-scam-buy-discount-tarp.html

[Ron Green]

1. In the New Economy, all banks should be local.

No branches, no holding companies, no interstate operations.

[KansDem]

2. I saw a movie about this...

[lunatica]

3. OMG! I remember that movie!

I saw it when I was a young teenager and it was so disgusting. Big giant sucking leaches!

[AndyA]

4. And now you get to see it again, for real, as an adult.

It's still disgusting.

The banking industry needs strict regulation, oversight, and the big ones need to be broken up so they are no longer too big to fail. I like the idea of local only. That way, when they do something crappy, you can go tell them to their face what you think of them.

[Odin2005]

5. What did Einstein say the definition of insanity was, again?

Something about doing the same thing over and over and expecting a different result? :crazy: