Banks are missing their dividend payments to the US Treasury; is this some sort of quiet revolution? I haven’t heard anything more about the actual TARP loan repayments since Barack refused to accept them back in April, 2009, and makeshift conditions were made for repayment back in May, ’09.
More than 90 U.S. banks and thrifts missed making a May 17 payment to the U.S. government under its main bank bailout program, signaling a rising number of lenders are struggling to meet their obligations.
The statistics, compiled by SNL Financial from U.S. Treasury data, showed 91 banks and thrifts skipped the May dividend payment under the Troubled Asset Relief Program, or TARP. It was the first missed payment for 23 of the banks; for the others, it was at least their second miss.
The number of banks missing their TARP payments rose for the third straight quarter. In February, 74 banks deferred their payments; 55 deferred last November.
SNL Financial’s analysis found 20 banks have missed four or more payments since the program began in 2008, while eight banks have missed five payments.
Under the TARP program, the U.S. Treasury invested in preferred shares issued banks looking for funds. The banks were to make regular dividend payments to the Treasury, and have the right to repurchase the shares at some point in the future. (emphasis mine)
While many of the largest U.S. banks easily repaid billions in TARP aid, more than 600 smaller banks still hold $130 billion from the program, created at the height of the financial crisis.
Talk about a gun to the head. Bank CEO’s say they were forced to take the money even though their banks were solvent and then they are required to pay dividends to the Treasury in hopes of getting permission to payback the loan they did not need?
Yet another revenue stream for a failing, bloated government using ‘fiat money’ from thin air that our children will have to pay back.