The TARP shell game

[marmar]

via Yahoo! Finance:



Banks Pay Back TARP Funds by. . .Borrowing From Treasury
By Daniel Gross | Contrary Indicator – Wed, Jul 20, 2011 4:56 PM EDT


Most of the big banks have repaid the government funds they received under the Capital Purchase Program (CPP), the pillar of TARP under which Treasury bought preferred shares in the nation's banks. Enough so that, combined with dividends and sales of warrants, Treasury has declared that taxpayers have earned a profit on the CPP. Thus far, $245 billion has gone out, and $255 billion in repayments, interest and warrants has come back, yielding a profit to taxpayers of $10 billion. And there's several billion more where that came from.

.....(snip).....

But sometimes there's less than meets the eye. Generally, banks that repaid CPP funds did so with cash raised from earnings, or by raising new outside capital. In finance and banking you always have to read the fine print. And if you go back to the report, you'll notice that the fine print accompanying the entries for each of the above exits makes reference either to Footnote 49 or Footnote 50. Footnote 49 reads: "Repayment pursuant to Title VII, Section 7001(g) of the American Recovery and Reinvestment Act of 2009 using proceeds received in connection with the institution's participation in the Small Business Lending Fund." Footnote 50 reads: "Repayment pursuant to Title VII, Section 7001(g) of the American Recovery and Reinvestment Act of 2009 — part of the repayment amount obtained from proceeds received in connection with the institution's participation in the Small Business Lending Fund."

All of which is to say that these banks repaid cash owed to a program run by the Treasury Department by. . . borrowing from another program run by the Treasury Department. ..............(more)

The complete piece is at: http://finance.yahoo.com/blogs/daniel-gross/banks-pay-back-tarp-funds-borrowing-treasury-205658852.html?sec=topStories&pos=5&asset=&ccode=

[snot]

1. I personally KNOW an unscrupulous conservative who was trying to open a bank

so he could make free money off the Fed by borrowing for nothing or next to it while investing the money in interest-bearing instruments.

We could ALL have bailed ourselves out if that deal had been open to us!

[indurancevile]

2. knr

[girl gone mad]

3. k & r

[bvar22]

4. Again, the Kabuki Theater leading up to the Biggest Heist in History

was superb.

The Timing was absolutely BRILLIANT.

It was perfectly timed to occur during the change over between the Republicans and the Democrats,
lending plausible deniability to BOTH.
It was NOBODY'S FAULT!!!
Now THAT is a GREAT scam!

Paulson's delivery of the 3-Page Extortion Letter was perfectly executed.
Disaster capitalism at its Finest.
If you don't have a disaster, Invent One!

It took our Congress and our Democratic President Less Than a Week
to hand over a Trillion Dollars CASH to these criminals with NO STRINGS ATTACHED,
and then congratulate themselves for their heroism & "bi-partisanship" in front of the TV cameras!
Many of the duped chimed in with acclaims of Thank GAWD it PASSED!!!

Paulson with Co-Conspirators

Now THIS is "Bi-Partisanship"!
Better get used to it!
Hahahahahahahahaha!