Treasury Secretary Frodo Geithner indicated today that banks such as Chase and Goldman Sachs will have to wait before being able to pay back TARP funds received under the Bush administration last year.
There are a number of banks, who seemingly are in a long line to pay this money back in order to get out from under the oppressive control of the government, but the catch is that the whole of the financial system must be healthy enough to sustain growth.
This presents a problem in that banks who are solvent enough are being illegally (in my opinion) restrained in their trade due to circumstances that may not be in their control. The value of the shareholder's stock and the confidence people have in the company is now going to be called into question.
If a bank is able to pay the TARP money back and the government denies the request, does the bank still have to pay interest on the funds?
We continue each day to hear about the little nickel and dime take aways the government is giving us under the guise of helping us help ourselves. We cannot afford this kind of help and it would be nice if those who sat on their hands last election would get out and make their frustrations known.
What do you think?
No comments:
Post a Comment