Update 2:Rep Jeb Hensarling on his deTARP legislation: Treasury says 10 banks can repay TARP money…
Update 2:
Right on baby, Free the Markets!!!
Interview with Rep. Jeb Hensarling (R) of Texas (Bloomberg News)
CNBC reports that TARP payback DOES get these firms out from under executive compensation guidelines (until the new pay czar sets up suggestions for non tarp firms that is) however, the WARRANTS are still outstanding AND the restrictions on hiring foreign workers still seem to be in force….IOW Congress still has their hands in the pie….
Update: the who’s who of paybacks:
JPMorgan $25b
Golden Slacks $10b
Morgan Stanley $10b (John Mack was all if Golden pays back I get to pay back too dammit, good for Mack)
US Bancorp $6.6b
AMEX $3.6B
Capital One $3.55 b (this one makes NO sense to me, they also were NOT told to raise capital in the stress tests, bizarre with credit card delinquency rates rising rapidly, betcha we see more about ole capital one soon)
BB & T $3.1b
Bank of NY $3.0 b
State Street $2.6 b
Northern Trust $1.57b
TOTAL 69.02b
Here is the shxtty part Timmeh has told Congress he and Team TOTUS believe they have LIMITLESS authority to REUSE ANY MONEY paid back into TARP INDEFINITELY for any purpose they damn well please..so NONE of this money will actually get back to taxpayers and reduce the ginormous deficit….
Rep. Jeb Hensarling (R-TX) is now proposing legislation to end the TARP program to try and stop them…right now they have an unlimites slush fund…
FREE THE MARKETS!
The part we need to watch is the warrants, can they buy them back..and is Treasury still planning to recycle the TARP funds endlessly as it sees fit….
Background from CNBC:
…The government is expected as soon as Tuesday to say which banks are on the list. The amount to be returned could be as much as $50 billion — twice the amount Treasury first estimated it would get back.
In addition to Morgan Stanley// and American Express banks expected to get the green light to pay back TARP money include Goldman Sachs Group JPMorgan Chase State Street and U.S. Bancorp
Meanwhile , Elizabeth Warren head of the TARP oversight panel says the banks need to be stress tested again right now, maybe she noticed that the stress test guidelines used a lower unemployment figure than we are currently experiencing….and since the banks refused to participate in PPIP, they are all still holding those toxic assets, the MBS on their books. Since FASB changed the mark to market rule they now have no impetus to sell those assets…we are right back where we were when Paulson initiated TARP….waiting for the housing fall to stop....
Moderate in the Middle 