Banks NOT giving back TARP $$$$$
As a practicioner of cross examination and ferreting out lies........this one doesn't even require the extra standard deviations of higher IQ that EverydayInvestor has to figure out.....
Banks funded Trillions of Toxic Loans that they knew or should have known the borrower would not likely be able to pay back....
Banks booked those loans as profits when they closed.
Bank executives made hundreds of billions in bonuses and profits from illusory stock appreciation and option exercises.
As any first year accounting student could foresee.....the loans started defaulting because there was little chance that the loans reasonably could be paid back againist the borrowers revenue stream
The loans were assets on the banks books....when the loans defaulted, the bank's assets started evaporating.
Due to evaporating assets...bank capital got dangerously low to forcing the banks out of capital compliance
The TAXPAYERS were forced to give money to the banks in the form of TARP $$$$$ to maintain appropriate capital levels under the threat of total financial meltdown
Even though the banks were contructively bankrupt, the bank executives extracted hundreds of millions in bonuses and foreclosed on the homes of Americans who were in a similar financial position
Realizing that the public would get very upset knowing that bankrupt banks were kicking bankrupt families out of their homes only because taxpayers were enabling it with TARP $$$$$...the bank executives promised to pay back the TARP $$$$$
The problem was the banks did not have any money to pay back TARP $$$$ because that is why they accepted it in the first place
As time went by, even more loans defaulted requring banks to accept even more TARP $$$$$
Now the the problem for banks deteriorated as the toxic loans were blowing up at an even faster rate
Hmmmmmmmmmmmmm With Trillions of worthless or nearly worthless toxic assets on the books and the banks still needing Trillions more......how were they going to pay back Billions in TARP $$$$$ even though they still needed EVEN MORE money?????
Easy.......ask the taxpayers for TRILLIONS of more dollars(by selling the toxic loans to taxpayers at above market prices) so they could pay back the Billions of TARP $$$$$$$$$$$$$$$$
In sum, banks pay back the BILLIONS of TARP $$$$$ from the TRILLIONS of dollars the taxpayers are overpaying for the toxic debt......in the end, the net is not the banks giving taxpayers back the TARP $$$$$$, but Wall Street, through their buddy Tim Geithner, extorting the American public for TRILLIONS to pay back BILLIONS.....
A similar deal happened when Lennar sold CALPERS LandSource for over a billion dollars....at the time I blogged in shock how any competent pension fund manager could pay such a ridiculous price for that piece of land.....now Lennar is buying it back from CALPERS for pennies on the dollar.....great for Lennar.....terrible for the workers of California dependent on their pensions
If you like being fleeced........hang on.......there is a lot more fleecing coming your way.
Here is what Jamie Dimon and JP Morgan is going to do with the money American taxpayers give him by overpaying for JPM's toxic debt.......and you wonder why people who see it are upset as JP Morgan through Countrywide forecloses on their homes??????
This ain't hard to see....especially if you have a pulse and are not deaf and blind.
If the government gave Alstry $10 million...he would be glad to give the government back $5 million.......