Hey, they held a party at taxpayer's expense- Tarp Banks Cut Lending, Raised Salaries

[kpete]

Tarp Banks Cut Lending, Raised Salaries

by Steven D
Thu Apr 22nd, 2010 at 10:49:31 AM EST
I'm shocked*, shocked I tell you that the banks who received the most TARP money actually cut lending while raising executive salaries and bonuses! Who could have predicted that?

Banks that received federal assistance during the financial crisis reduced lending more aggressively and gave bigger pay raises to employees than institutions that didn't get aid, a USA TODAY/American University review found. <...>

USA TODAY and the American University Investigative Reporting Project used federal bank data to conduct the first comprehensive analysis comparing the behavior of 940 banks in the Troubled Asset Relief Program (TARP) and 7,400 banks outside it. Key findings about TARP's first year:

• Lending fell. The amount of loans outstanding to businesses and individuals fell 9.1% for the 12 months ending Sept. 30, 2009, at banks that participated in TARP compared with a 6.2% drop at banks that didn't.

• Employee pay rose. Average pay at banks getting aid rose 9.4% in the program's first year. By contrast, non-TARP banks increased salaries 1.8%.

• Cost-cutting limited. Banks in TARP cut costs less than those outside the program. Government-aided banks increased branches by 2.7% while non-TARP banks cut branches by 1.2%.
http://www.usatoday.com/money/industries/banking/2010-04-21-tarp-banks_N.htm

more:
http://www.boomantribune.com/story/2010/4/22/104931/631

[Romulox]

1. As always, thank GAWD it passed.

The same folks who lost all that money assured us that there would be Armageddon if they didn't get trillions in taxpayer money. Well, they got the money, and no armageddon. QED, uh, right?

[progressoid]

2. Yep. It works as well as my Bengal Tiger repellent

Since I've been using it, I haven't had any Bengal Tiger attacks. Just like that door to door salesman said.

[Romulox]

3. References. Brilliant!