Get-Tarp Hero: Take This TARP and Shove It

Give it Back

Give it Back

More banks giving the money back.  Fabulous.  I dont care that their reasons are selfish, the point is that there are winners and losers again and someone out there still has some fight left in them.

From the New York Times:
Financial institutions that are getting government bailout funds have been told to put off evictions and modify mortgages for distressed homeowners. They must let shareholders vote on executive pay packages. They must slash dividends, cancel employee training and morale-building exercises, and withdraw job offers to foreign citizens.

Basically, if you take the TARP money, you are de facto signing up for the Obama team’s social engineering project, where we are forgiving loans, forcing new loans and socializing potential profits.  Many community banks took the TARP cash because they thought they were being patriotic.  Now, banks like Signature in New York, TCF in Minnesota and Iberiabank in Louisiana, which I lauded earlier this week are saying thanks, but no thanks.

The demands to modify mortgages or forestall evictions are especially onerous, some bank executives and experts say, because they could prompt some institutions to take steps that could lead to greater losses.

In other words, the business side of the program was meant to prevent systemic collapse, but the rainbow and unicorn side of the program is meant to make public company banks into municipal libraries or community rec centers, complete with government-mandated risky lending.

Give it back if you can, guys, I don’t blame you.  Let the crippled monstrosities who have no choice run their business like a charity.

Full Story: Strings Attached (NYT)

Read Also: Get-TARP Hero: Iberiabank

Tags: , , , , , , ,

This content, which contains security-related opinions and/or information, is provided for informational purposes only and should not be relied upon in any manner as professional advice, or an endorsement of any practices, products or services. There can be no guarantees or assurances that the views expressed here will be applicable for any particular facts or circumstances, and should not be relied upon in any manner. You should consult your own advisers as to legal, business, tax, and other related matters concerning any investment.

The commentary in this “post” (including any related blog, podcasts, videos, and social media) reflects the personal opinions, viewpoints, and analyses of the Ritholtz Wealth Management employees providing such comments, and should not be regarded the views of Ritholtz Wealth Management LLC. or its respective affiliates or as a description of advisory services provided by Ritholtz Wealth Management or performance returns of any Ritholtz Wealth Management Investments client.

References to any securities or digital assets, or performance data, are for illustrative purposes only and do not constitute an investment recommendation or offer to provide investment advisory services. Charts and graphs provided within are for informational purposes solely and should not be relied upon when making any investment decision. Past performance is not indicative of future results. The content speaks only as of the date indicated. Any projections, estimates, forecasts, targets, prospects, and/or opinions expressed in these materials are subject to change without notice and may differ or be contrary to opinions expressed by others.

Wealthcast Media, an affiliate of Ritholtz Wealth Management, receives payment from various entities for advertisements in affiliated podcasts, blogs and emails. Inclusion of such advertisements does not constitute or imply endorsement, sponsorship or recommendation thereof, or any affiliation therewith, by the Content Creator or by Ritholtz Wealth Management or any of its employees. Investments in securities involve the risk of loss. For additional advertisement disclaimers see here:

Please see disclosures here.

What's been said:

Discussions found on the web