How TARP Paybacks Expose the Weakest Banks

I don't really think that letting the four worse banks in trouble to close is going to hurt us that much. The sickest four screwed their customers with lousy mortgages, mess with their credit cards and now they are working on debit cards.

I am one that got so tired of Bank of America doing those things I closed all my accounts with them. I went to another bank and believe me if this bank does what BOFA did to me I will close those accounts and go to credit unions.

I am a customer and I look at what these banks are doing might be legal, but they are morally wrong. I don't see why customers put up with it.

Johnny Holden of WA 8:58PM June 13, 2009

Part 1

Anonymous Banker says TALF is laundering bank bad debt with our taxdollars (http://anonymousbanker.com/?p=367)

I've written extensively on the TALF program. And while I always suspected as much, I now have come to the certain conclusion that TALF is the goverment's way of laundering new and existing subprime auto loans subprime credit cards loans, that are currently on the books of the banks or their investment bank subsidiaries, with our taxdollars. The program is complete thievery. And shame on everyone for not being up in arms about what is happening. Journalists... I'm putting you all on the top of that list. You are failing this country miserably.

I, for one, don't want my tax dollars used to purchase sub-prime car loans and credit card loans. I don't even want to hear the word sub-prime again, in my lifetime. I want the banks to be responsible lenders and verify income and debt when they issue a credit card or an auto loan. And I don't want my office computer spurting out a pre-approved offer of a credit card to any customers. Yes, this is still happening and will continue to happen because our Regulators are allowing it to happen in direct violation of all the laws governing safety and soundness in bank lending.

And why are the banks still willing to grant credit in this irresponsible manner? Because they know they can sell these toxic assets off through the TALF program and any losses on these bad loans will be paid for by our taxes and the taxes paid by our children and our grandchildren, and for generations that follow.

If a bank is allowed to sell its toxic assets through the TALF program, and if the TALF program is funded with TARP funds, then any bank that sells its assets through TALF is still benefiting from TARP. Therefore, any bank that is selling their bad assets off through TARP should still be subject to executive compensation limits and restrictions on dividends, among other rules. If banks want to be truly independent of our government's meddling, then let them live and die by their bad lending practices and eat all the sub-prime credit card and auto loans they granted and continue to grant.

The government has set aside $200 Billion dollars to fund the TALF program. On June 2nd, the banks laundered $3.3 Billion dollars in auto loans and $6.2 Billion dollars in Credit Card loans (out of a total of $11 Billion dollars in total loans laundered in just that day).

(http://www.newyorkfed.org/markets/TALF_operations.html)

Anonymous Banker of NY 12:43AM June 13, 2009