Daily Beast: Goldman Sachs to Repay TARP Loans Soon
By Susie Madrak Saturday May 16, 2009 1:15pmIt was my understanding that there were penalties for early repayment of TARP loans, but this Daily Beast story doesn't mention it. According to them, Goldman Sachs will soon be out from under government control:
Wall Street may have another reason to hate Goldman Sachs: The venerable firm with contacts throughout the federal government looks as though it may be the first financial institution to be allowed to repay government bailout money, The Daily Beast has learned. Repaying its TARP loan would free Goldman from various restrictions, including those on the compensation of key executives.
The decision as to which banks would be given the green light from banking regulators, most notably the Federal Reserve and the Treasury Department, could be made as early as next week, these people say. Goldman already has a tentative approval from the Treasury and is awaiting approval from the Federal Reserve, according to one person with knowledge of the matter.
JP Morgan feels comfortable they have convinced both the Treasury and Fed that they should be allowed to repay the money along with the first group of banks.
During the height of the financial crisis the federal government handed out billions in aid to the big banks in an effort to boost capital levels depleted by bad real estate loans and bonds. While the bailout money helped stabilized a spreading financial panic, it also led to massive government ownership of some of the nation's largest banks and controls on business practices and compensation.
As the financial crisis has abated, some banks, most notably Goldman Sachs, JP Morgan Chase, Bank of America, and Morgan Stanley have said they can now repay the money and get out from under federal control. The government must first approve the measure; last week it announced results of so-called stress tests to determine which banks have the most capital to withstand further erosion in business conditions. The government also announced two conditions to repay the money: The issuance of debt that is not backed by FDIC insurance and sufficient so-called "tier one" capital levels. Tier one capital is the strongest capital in the market.
Based on the stress tests, Goldman Sachs and JP Morgan were deemed to be among the strongest of the big banks; unlike Morgan Stanley, Bank of America and Citigroup, both Goldman and JP Morgan were not required by regulators to raise capital levels. Since that time, officials at Goldman and JP Morgan have been pressuring regulators to allow them to repay the bailout money that was granted from the Troubled Asset Relief Program or TARP.
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speaking of that one...
remember former Treasury Secretary, Henry Paulson?
Was former Chairman, and Chief-Executive Officer, of
Goldman Sachs...
Came out with bush on the $700 Billion dollar banking Bailout, just 2 days after Lehman Brothers went belly up..
sounds fishy, doesn't it?
even if they pay back TARP money going directly to them. Until GS pays back the taxpayers the 100% on the dollar they received as counterparties credit default swaps sold by AIG to GS because it was taxpayer dollars funneled through AIG that allowed GS from taking large large haircuts. The government needs to get some if not all of that money back from AIG before its stranglehold is loosened.
These banks should not be allowed to pass on all their losses to us in the form of high unemployment, lost homes and lost savings in essence wiping the slate clean of their fiasco. They do not get a reset button to start all over again with the same policies that got us into this mess. Until a new crop of management personnel come on the horizon I think the government should maintain their control over these organizations, particularly on the subject of executive earnings. They have proven they will suck us dry therefore we can not let them perform their duties without supervision.
When the fight over greater oversight and regulation of these markets comes, these will be the soldiers on the frontlines.
They will cry about how Obama's regulations actually caused the meltdown BEFORE he took office.
like racecars. From bankrupt, to sterling business role models in just a few short seconds. It's amazing. Last fall they were all gonna collapse if the taxpayers didn't immediately give them billions upon billions. Now suddenly, all is swell. Nothing to see here, move along. WTF?
All better now. Isn't it amazing? Now that the criminals have had 6 months to offshore our tax dollars and dress up their books, we find out they no longer need oversight, because everything is fine.
In September, we woke up to the news that Wall Street needed 3/4 of a trillion dollars pronto, or we were all going down! At the time I thought, WTF? Is this chimpy's final massive transfer of wealth to the super rich before the little bastard leaves office? And now, we find out they are all just hunky-dory. What bullshit!
I will be watching Obama and the dimbocrats closely on this one.
Soon the Wingnut Chorus will be singing the Blues because there are restrictions on PAYING BACK THE TARP FUNDS EARLY!
They will portray it as socialist control rather than safeguarding the economic stability of the financial system.
And beware these companies vigorously joining the debate to undermine President Obama.
Paulson gave his favorite banks a bailout and they thought they could hide it and save their big bonuses. He's a crook as is GS. When AIG pays pack every penny, including the money they gave GS, then it might be paid back. Paulson should be in jail.
Why would AIG deduct the GS payment?? As it is a loan, the government has the only right to forego any or all portions of the repayment.
http://www.bloomberg.com/apps/news?pid=206010...
Have fun!
The #1 motivating factor, LOL.
Relief voted down yesterday by our "friends" the democrats.
33-40% interest rates WON for the credit card companies, and the BANKS we just bailed out, fuck US.
Thought you would like to know who's pulling for us.
Bernie Sanders wanted a 15% cap on cc interest rates.
USURY is just fine with all those Bluedogs making certain we can't win for losing. If you're not out of your mind with the realization just how betrayed we ARE, and what's just up the pike for us, you're really not thinking.
Isn't it good at least to remove all doubt?
Was that a slip of the pen or what? Venerable thieving bastards is more like it.
What people need to understand is that the great banking fraud continues.
Wells Fargo reported record profits. Wells Fargo was then told that it needed to raise 15 billion in capital, as a result of the stress test. A company making record profits does not need to raise capital.
Thus, Wells Fargo did not make record profits. They were a sham.
GM could book a record profit, too, if it was able to book it's negative net worth of 60 billion dollars as a profit.
Wells stock went from 8 to 28 on a sham. But now Wells can sell new stock at 25, instead of 6.
A FASB rule was changed so that the banks could goose their reported profits, counting losses as profits. Thus Wells Fargo had record profits in the first quarter.
F R A U D.
Look what GM has done w/bailout money. Closed shop is u.s. and opening in China.
Citibank, billions to open branches in China and elsewhere.
These ghostly billions are being used for New business ventures outside the u.s..
Of course not one word by Obama's admin about how we are funding our own demise.
Credit is over people. Our own party just voted yes to Usury ensuring millions of us will fall and won't get up.
Relief voted down yesterday by our "friends" the democrats.
33-40% interest rates WON for the credit card companies, and the BANKS we just bailed out, fuck US.
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What are you doing when you deposit money in the bank. You are loaning it to them.
I closed my savings account and i keep the money as cash. It is npot a lot of money, but if millions did this, it would add up to a lot of money the banks will not have at their disposal.
I hear silver ingots are the best investment now at $14oz.
Please check out CommonGoodFinance and tell me what you think.
As long as we're holding in a position of "dems good rethugs bad" potshotting here at c&l we are focusing on a paradigm of Days Gone By. if we don't reframe our entire approach we are doomed.
By our own actions we should actively shut down banks, shake off our hypnosis of helplessness of the last 9 years, take a few tips from Naomi Klein and take a long look at how the French are taking no shit from their electeds.
remember this one?
http://crooksandliars.com/susie-madrak/some-c...
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