Banks Missing Dividend Payments To TARP

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 Banks Miss TARP Payments

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.

The Real Sign Of A Recovering Economy

The Real Sign Of A Recovering Economy

I wanted to drop a few notes about the ‘recovering economy’ lie that is being touted.  First, this site is going to continue to go a bit sideways as I am working on posts that are all financials based and you know how TPTB really hate it when we aren’t talking about oil spills, terrorists, illegal aliens, and left vs. right.  When one tries to explain that Goldman Sachs runs the government and not the other way ’round, or Greece is collapsing everything hits the fan. (As I write this, my host is running Emergency Maintenance because of problems.)

One coming attraction that should really set the world ablaze is the statement I heard today on ‘Your World’ that Bambi is going to say tomorrow that he will veto any financial reform legislation that threatens the independence of the Federal Reserve.  Wow – that’s a newsflash, isn’t it.

More importantly, how many have noticed that the reports of bank seizures have taken a remarkable dive in the MSM?  I’m sure MarketTicker has noticed, and I have to wonder what odds he would give on seven banks being seized the same day in only one state, that being Illinois on April 23rd, 2010?

In 2008, a total of 25 banks failed with 20 of those banks failing between July 11th and December 12th – this during the height of the Federal Reserve, Treasury, and Congressional freakout.  In 2009, a total of 140 banks failed during the entire year; with an average of just over 11 banks a month.  I just took a look at the FDIC Failed Banks List again, and we are currently at 64 banks in the first four months of 2010; an average of 16 banks per month.

(more…)

Charles Payne On TARP SIG’s Report: Home Mortgage Modifications

Neil Cavuto interviews Charles Payne on Obama’s $30 billion small bank bailout which he believe will do little as the banks that receive the money will just sit on it like the Big Boys did.

What’s more important about this interview is the Neil Barofsky report that has another interesting tidbit inside.

This is going to be another one of these programs that sounds great on the surface but doesn’t work, like this home mortgage program.  This thing is a disaster.  I don’t know if you if saw this Neil Barofsky report, but he’s saying $75 Billion to help 4 million, (Neil: This is the TARP guy), he’s the TARP inspector general.  This guy has been the straightest guy out of everybody out there, maybe that’s why we don’t hear about him too much.  $75 Billion dollars set aside to help 4 million homes.  He’s saying that it’s only helped 66,000 so far?

For those that would like to peruse the 224 page quarterly report to Congress issued 1/30/2010, go here.

From Page 96:

Homeowner Support Program

Making Home Affordable Program

The Making Home Affordable (“MHA”) program was introduced by the Administration on February 18, 2009, as a collection of three major initiatives: a loan modification program, a loan refinancing program, and additional support for reduced mortgage interest rates.  According to Treasury, the program was designed
to offer assistance to millions of homeowners making a good-faith effort to pay their mortgages and to protect families and communities from the destructive impact of the housing crisis.  Subsequently, Treasury has created a foreclosure alternative program as a part of MHA. TARP funds are primarily dedicated to one initiative within MHA, the Home Affordable Modification Program (“HAMP”).  According to Treasury, HAMP is a
$75 billion program that will lower monthly mortgage payments for homeowners by providing loan modification incentive payments to the servicers and loan holders (lenders or investors — referred to as investors in this section) and by protecting against further loss of collateral value.  In addition, the MHA program now includes foreclosure alternatives for those not able to complete a HAMP modification. Of the $75 billion reserved for HAMP, $50 billion will be funded through TARP and will be used to modify private-label mortgages.

Of the $50 billion in TARP funding, $10 billion has been allocated to encourage HAMP modification by protecting investors from potential home-price declines in their mortgage portfolio assets in regions where forestalling foreclosure may lead to significant losses. According to Treasury, the purpose of the Home Price Decline Protection (“HPDP”) program is to “encourage additional lender participation and HAMP modifications in areas with recent price declines by helping to offset any incremental collateral loss on modifications that do not succeed.”  In addition, Treasury estimates that another $4.6 billion of the TARP $50 billion allocation will be used for the Home Affordable Foreclosure Alternatives (“HAFA”) program, previously referred to as the Short-Sales/Deeds-In-Lieu of Foreclosure (“SS/DIL”) program, designed to provide alternatives to foreclosure.  Beyond the TARP support, the additional $25 billion in HAMP funding is provided under the Housing and Economic Recovery Act of 2008 (“HERA”) and will be used to modify mortgages that are owned or guaranteed by the Federal National Mortgage Association (“Fannie Mae”) and the Federal Home Loan Mortgage Corporation (“Freddie Mac”), two of the Government-sponsored enterprises (“GSEs”).

Status of Funds As of December 31, 2009, Treasury had signed agreements with 102 loan servicers
allocating up to $35.5 billion under HAMP. Of that $35.5 billion, as of December 31, 2009, $15.4 million had been spent on incentives for 11,574 of the 66,465 permanent modifications.  The remaining permanent modifications will receive incentive payments in the next quarter. Of that $15.4 million, approximately $12.1 million represents incentive payments to servicers and $3.2 million represents payments to investors.  Borrower incentive payments begin only after one year of participation in the program.
To date, the largest allocation of incentive payments went to Countrywide Home Loans Servicing LP, now owned by Bank of America, which is eligible to receive up to $6.8 billion in TARP funds. The average allocation to each servicer through HAMP is $348.5 million.  The amount of funding allocated to a servicer does not represent the amount of incentives paid to the servicer; rather, the allocation is the maximum amount, or cap, of potential incentive payments that Treasury has approved for each servicer. Table 2.25 provides details regarding the five largest allocations made under HAMP as of December 31, 2009.

Barney Frank Not Convinced Compensation Linked To Talent; Limit Bonuses

Barney Frank Not Convinced Compensation Linked To Talent; Limit Bonuses

The Progressive Socialist Democratic Party

In a prime example of a Progressive Socialist Democratic Party “I want my cake, and I want to eat it too” moment, Barney Frank is planning on hearings to limit Wall Street bonuses.  The “I want my cake” moment?  How does one implement a 90% tax on executive bonuses, proceed to limit them, and not understand that it is counterproductive? If the true intention of the tax “was the quickest way to show angry Americans that Congress intended to recoup the extra dollars”, then why limit them?  I know, I know, I’m not even covering the un-American, anti-Capitalist, anti-Free Market angle of this because we all know the democrats have gone off the marxist cliff, and are dragging us into third world, banana republic status with them.

Frank to hold Financial Services hearings on limiting executive pay

Rep. Barney Frank (D-Mass.) is mounting a new effort to limit executive compensation as Wall Street prepares this month to pay out huge bonuses.

Frank, chairman of the House Financial Services Committee, said he is looking at levying new taxes or fees on financial firms as well as ways to further empower shareholders to restrict pay.

“The question of compensation for people in the financial industry is a legitimate cause of concern,” Frank said on Wednesday.

Frank called a hearing for Jan. 22 and said he is not convinced by arguments that restrictions would hurt the industry by forcing well-paid employees to go elsewhere.

“I don’t know where people would go for comparable salaries,” he said, saying that they might need to go to Mars to escape.

“There may be in some of these financial institutions people capable of playing Major League Baseball. I’m not aware of any.”

The heads of the nation’s biggest banks were testifying on Wednesday before the Financial Crisis Inquiry Commission, a panel set up by Congress to investigate the causes and consequences of the financial crisis.

Meanwhile, the Obama administration is moving to impose a new fee on banks to make up the deficit in the government’s $700 billion bailout program for the industry.

WHAT?  How stupid is that? I swear the morons in Washington do not understand the finite concept. There is only so much money in the world (unless you are the Fed) and it is constantly in motion. When Obama fines the banks to recoup the money he took from us to bail them out, the banks charge us higher fees to pay us back for the money we loaned them. WHISKEY TANGO FOXTROT?  Is there an understanding NOW why so many were against the bailouts back in September, 2008?

Obama to announce bank fees to cover billions in TARP losses

The fee on financial institutions would raise up to $120 billion to ensure that taxpayers who bailed out banks are paid back, the official said Tuesday. The figure is at the upper end of a conservative estimate of losses associated with the program and Treasury officials expect the actual number will be much lower.

And in a completely related story; has anyone informed God that Barney is running the universe now? Barney’s first miracle will be to limit bonuses but still be able to tax the initial intended amount by the 90% tax rate and recoup the money that was lost on TARP.  The best financial talent in America will be able to pay the tax with money they never received and will continue to work here in the United States Of Socialist America.

(Has anyone told The Chosen One that Barney has leapfrogged him for the throne, and does the average secular moonbat know that there is a God and Barney has taken his seat?)

The Moral Of The Story; Treasury Issued Fringe Benefits

Remember This?

Given what our current VP in charge of nothing said back on the campaign trail, wouldn’t that make the 13 TARP receiving banks who owe back taxes unpatriotic, and would it not make GM suspect?  Once again, read the whole article and cast your eye on TurboTax Timmie’s Treasury Department.

GM bailout has future tax break worth billions

WASHINGTON (AP) – The government bailout of General Motors includes a valuable prize for the ailing carmaker: a tax break that could save GM and its future investors more than $12 billion—if it ever becomes profitable again.

But these are far from ordinary times. The Treasury Department has, in effect, suspended long-standing tax rules for companies that receive bailout money, providing benefits not available to firms that don’t receive government help. New Treasury rules could provide GM billions in tax breaks once it becomes profitable and starts paying taxes again, which could be years away.

For tax purposes, it’s like the government’s ownership never happened, said Robert Willens, a corporate tax accountant in New York.

The new tax rules, issued over the past several months, are part of the government’s massive effort to prop up struggling financial firms and the automobile industry. The goal is to help companies like GM eventually become profitable, so the government can sell its stake, get back its investment and get out of the carmaking business.

The notices have the full effect of a law, even though they aren’t reviewed or approved by Congress. They also apply to banks and other financial firms receiving money from the Troubled Asset Relief Program, or TARP. (empasis added)

But the new rules don’t apply to corporations that are taken over by other private companies. That means Chrysler could lose the value of its tax write-offs in its merger with Italy’s Fiat Group SpA, depending on the structure of the company after it emerges from bankruptcy protection, tax experts said.

The moral of this story is to become part of the government and do not pay your taxes like most of Barack Obama’s appointees and bailed out banker friends. (Did Chrysler not contribute enough to Dem’s campaigns?)

If you are still thinking that anyone besides The Federal Reserve and the Treasury Dept. are running this country….wise up!  This would also explain why writing to your representatives in D.C. is no longer an efficient or logical means of effecting change.

Pay Attention! Reasons Why The Middle Class Is So Screwed

On 12/21/08 I wrote “Are We As Dumb As Our Elected Officials?” about the Bailout $$ and the $$ the Fed has loaned to banks to the tune of 2 Trillion.  A commenter (H/T to Kat In Your Hat) over at Puma Pac dropped some info about the following video….so, of course I went looking and found another interesting video to add to your knowledge of why the middle class is so strapped.

John Stossel has done a “Give Me A Break” segment on the disappearing bailout cash and also the trillions being loaned by the Fed that will not be spoken of.   Please be aware that the Chair of the Congressional Oversight Panel, Elizabeth Warren is NOT a moron; for some reason 20/20 has decided to make her look like one.  Also, please be aware that I am still researching the next series of articles, but every time I think I am starting to get a handle on the subject, another tentacle appears that I have to run down…

I decided to do some digging and found this UCBerkeley on YouTube. This video is very long, but well worth watching. Once Ms. Warren starts speaking about why the middle class is collapsing, you may not be able to stop watching.  Pay Attention!; and if you have children, know someone who has children, are planning on having children; DOUBLEY-SO!

The Collapse Of The Middle Class:

Are We As Dumb As Our Elected Officials?

Are We As Dumb As Our Elected Officials?

…or are we just too busy trying to keep roofs over our heads, and our children fed?

Do Not Be A Sheeple!!

Do Not Be A Sheeple!!

Just asking, just want to know…

The Monster has had so much angst for days now that I have not been able to write anything until this evening when I read an article that was reminiscent of a post I wrote back on December 12th entitled “Is The Fed Following The Lead Of The One?” concerning the secrecy behind $2 TRILLION of emergency Loans.

I know you all remember the $700 Billion (TARP) Bailout for the banks that was rushed through the Congress against the wishes of most of the American Populace by the Republican President and Democratic Congress in keeping with the wishes of one Hank Paulson.  I am still wondering how one man with, what looks like, a hidden agenda ended up panicking so many politicians.   In my household there is a saying “panic will get you killed”, and I am thinking that there are more Americans than just me that believe that statement on some level.  I am not panicking, I am getting angrier by the minute by an article I just read, and I believe that in the distraction of The One, The Rahm, The Blago, The Cheney, The Biden and the Dipsticks in Congress, y’all might just miss this:

Where’d the bailout money go? Shhhh, it’s a secret

WASHINGTON (AP) — It’s something any bank would demand to know before handing out a loan: Where’s the money going? But after receiving billions in aid from U.S. taxpayers, the nation’s largest banks say they can’t track exactly how they’re spending the money or they simply refuse to discuss it. (emphasis mine)

If I was a Republican senator or congressman, I would be jumping on this issue like a rabid pitbull with lockjaw.  Hint..hint…(Getting re-elected is easy for a Champion Of The People).

“We’ve lent some of it. We’ve not lent some of it. We’ve not given any accounting of, ‘Here’s how we’re doing it,'” said Thomas Kelly, a spokesman for JPMorgan Chase, which received $25 billion in emergency bailout money. “We have not disclosed that to the public. We’re declining to.”

Ladies and Gentlemen, you just became the largest bank in the world and are loaning money to bankers who will not tell you how they are spending it.  How does that make you feel?  Do you think that is a better investment of your dollars, than say, your retirement or your child’s college education?

The Associated Press contacted 21 banks that received at least $1 billion in government money and asked four questions: How much has been spent? What was it spent on? How much is being held in savings, and what’s the plan for the rest?

None of the banks provided specific answers.

I guess we should be calling in the marker, yes?

“We’re not providing dollar-in, dollar-out tracking,” said Barry Koling, a spokesman for Atlanta, Ga.-based SunTrust Banks Inc., which got $3.5 billion in taxpayer dollars.

Some banks said they simply didn’t know where the money was going.

A bank not writing the dollar amounts in and out?   Say What?  Does that sound as ridiculous to you as it does to me?  I am calling bullsh** on that bold faced lie.

“We manage our capital in its aggregate,” said Regions Financial Corp. spokesman Tim Deighton, who said the Birmingham, Ala.-based company is not tracking how it is spending the $3.5 billion it received as part of the financial bailout.

The answers highlight the secrecy surrounding the Troubled Assets Relief Program, which earmarked $700 billion – about the size of the Netherlands’ economy – to help rescue the financial industry. The Treasury Department has been using the money to buy stock in U.S. banks, hoping that the sudden inflow of cash will get banks to start lending money.

There has been no accounting of how banks spend that money. Lawmakers summoned bank executives to Capitol Hill last month and implored them to lend the money – not to hoard it or spend it on corporate bonuses, junkets or to buy other banks. But there is no process in place to make sure that’s happening and there are no consequences for banks who don’t comply.

So a Bailout Bill was written for the express purpose of unfreezing credit markets and no provision to make sure that happened?

“It is entirely appropriate for the American people to know how their taxpayer dollars are being spent in private industry,” said Elizabeth Warren, the top congressional watchdog overseeing the financial bailout.

But, at least for now, there’s no way for taxpayers to find that out.

No.Way.For.Taxpayers.To.Find.Out.

Do I have your attention now?

Ladies and Gentlemen:

We Have Been Had Again By The Corrupt Congress.

What Would You Like To Do?

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