So we're gonna tax banks to cover the holes in TARP...

[nova]

Can somebody explain why exactly?

AIG, autos offset Treasury bank bailout profits | Reuters

U.S. taxpayer profits from bank bailout investments are being offset by estimated losses from American International Group and automakers and mortgage payment cuts for struggling homeowners, a U.S. Treasury report showed on Monday.

We have really and truly elected some brilliant indviduals to run our country....

 

[Tim]

Explain what exactly?

Of the tarp funds given out, some sectors are paying it back with interest (profits) while some are in the red (losses) and the losses are larger than the profits. So what is your question?

 

[nova]

My question is rather rhetorical in nature.

I understand the financial reality of the TARP payouts.

The banks are paying back their portion. They're not the source of the loss. But we're going to tax the banks to cover all the losses from the bailouts TARP was never intended to cover, like the auto companies and AIG.

Basically the admin is proposing taxing the group that is paying back their obligations to cover ill advised political adventures into area that were never authorized and going tits up.

An even worse way of looking at it with respect to GM/Chrysler is we're going to tax the banks to finance the admin buying off the UAW....

And when I say "tax the banks" what I really mean, is you, me and everybody else because we'll end up paying in the form of higher fees and lower interest rates on our savings....

 

[Tim]

Where did you hear about this tax? It's not in the article. Is it something new?

 

[dt3]

Where did you hear about this tax? It's not in the article. Is it something new?

FOXNews.com - Source: Obama Considering Tax on Rescued Banks

It's just being considered right now.

 

[dt3]

And before Alicia comes in here bitching about Fox News, I'd like to preemptively point out that it's an AP story

 

[Tim]

Here is something you need to read.

New York Attorney General Andrew Cuomo's report on the bonus structures of the banking industry is out and — oh my— it's damning. The AG says that 3 banks, Goldman Sachs, Morgan Stanley, and JP. Morgan Chase, paid out bonuses that " were substantially greater than the banks' net income." The report says that combined, these three firms earned $9.6 billion, paid bonuses of nearly $18 billion, and received TARP taxpayer funds worth $45 billion. Why did this happen? Because, according to Cuomo, when times were good the bankers rewarded themselves based on performance. When the economy started to sour — they decoupled the bonus structure from reality and kept rewarding themselves.

Actually it's 8 banks that paid out more in bonuses then their net income. They are paying themselves more in bonuses then they are making??? And they are the ones who received our tax dollars to bail their asses out of the mess they created?

Tax them back into the stone age. The banking industry makes nothing, they make all their money off the backs of others. We need a national bank.

And to top that all off, they are getting their money from the fed at near zero interest rate and increasing their margin to you and I.

 

[Tangerine]

Tax them back into the stone age. The banking industry makes nothing, they make all their money off the backs of others. We need a national bank.

No thanks. I pay way more taxes than I should already. I'd rather not ALSO pony up more to my bank.

 

[Tim]

The banks are already raking you over the coals... and your tax money is helping them out.

So how's that working out for you?

As for me, I will be closing my bank account and moving my money to a small local community bank. Possibly a credit union.

 

[Accountable]

Here is something you need to read.



Actually it's 8 banks that paid out more in bonuses then their net income. They are paying themselves more in bonuses then they are making??? And they are the ones who received our tax dollars to bail their asses out of the mess they created?

Tax them back into the stone age. The banking industry makes nothing, they make all their money off the backs of others. We need a national bank.

And to top that all off, they are getting their money from the fed at near zero interest rate and increasing their margin to you and I.

Yeh! How dare they honor their contractual obligations!!?! :sarcasm

If the OBushma administration and congress had paid the slightest attention to their job descriptions (the Constitution) we wouldn't even be having this conversation.

Maybe we need a more activist Supreme Court, since the other two branches aren't considering constitutionality.

 

[Tim]

A business model where they pay more in bonuses then their net income is doomed to fail.









well unless we bail their sorry asses out, then the rules change.

 

[Alien Allen]

Wihat is the purpose of the FDIC if the banks are gonna get bailed out in advance?

This is one area where the banks need to be broke up. They have a closed monopoly almost on way too much money

 

[Tim]

:homo:

 

[Tim]

although, the FDIC does nothing to protect the banks or their investors. It only provides protection for the customers.

So if you own a bank that gets into trouble, the FDIC will step in and take control of the bank to protect the customers. It will then clean up the debts and sell it off as a solid institution again. So the original owners and investors of that bank are left out in the cold. And this is how it should be done.

 

[All Else Failed]

lol why do so many of you want a nanny state

 

[Accountable]

Who is the "so many" that that post is aimed at: Nova, Tim, dt3, Tangerine, Alien Allen, me?

I think I mentioned here before that I'd like to see a measurable definition of "too big to fail" so that a company would be broken up when it crossed that threshold. That way the company could fail without undue hardship to the nation. Now THAT would promote the general welfare.