Brace yourself:

At least 110 banks have requested about $220 billion from the Treasury Department’s rescue fund, and many more are expected to have submitted applications before Friday’s deadline.

The figures, from banks’ own statements and analyst reports, indicate the requests are closing in on the $250 billion the Treasury set aside from the $700 billion fund to purchase stock in banks.

Analysts at Keefe, Bruyette & Woods estimated that 62 banks have received full or preliminary approval from the Treasury for $173 billion from the Troubled Asset Relief Program. The government said Monday that American International Group Inc. also would receive $40 billion from the program.

Another 48 banks have applied for about $6.5 billion, according to the Keefe, Bruyette & Woods report. Several banks that have filed applications said they haven’t yet decided whether to accept any funds.

The tally doesn’t include requests from four life insurance companies that are seeking regulatory approval to purchase savings and loans in order to become eligible for government funds.

Wow!

Source:
110 Banks Have Asked for $220B Under Bailout Plan
ASSOCIATED PRESS, November 14, 2008

http://www.nytimes.com/aponline/business/AP-Meltdown-Banks.html

Category: Bailouts, Credit, Taxes and Policy

Please use the comments to demonstrate your own ignorance, unfamiliarity with empirical data and lack of respect for scientific knowledge. Be sure to create straw men and argue against things I have neither said nor implied. If you could repeat previously discredited memes or steer the conversation into irrelevant, off topic discussions, it would be appreciated. Lastly, kindly forgo all civility in your discourse . . . you are, after all, anonymous.

14 Responses to “110 Banks Have Asked for $220B Under Bailout Plan”

  1. harold hecuba says:

    a MUST listen over at kedrosky’s site. i kind of like peter schiff even if he did not see the deflation tsunami that hit the globe. this video must be seen. Barry periodically sights HORRIBLE calls by the meatsticks on wall street. listen as the shills laugh at peter schiff’s calls for the credit collapse. calls for financials being buys of lifetimes back in 2007. this video will make you illhttp://paul.kedrosky.com/archives/2008/11/14/homage_to_peter.html

  2. JohnnyVee says:

    I respect Schiff. To think that he underestimated the problem in terms of the world impact is his only error. The other scum were too stupid to even consider the problem. Ben Stein, for example, owes everyone an apology.

  3. sjankis630 says:

    Seeing this video is so cathartic it is too much.
    Thank you harold. Especially seeing Ben Stein who should have stayed in acting. I actually bought his book on investing and while reading though it thought he had some great points on how to be reasonable with your money. After seeing him shill here though makes me want to throw the book away.
    Everyone of those clowns ought to be shown the door. Everytime they speak there should be this video played at high volume with the date showing how wrong they were.
    Also there should be a wall of shame in the back of every broadcast about the crisis with these people’s names on it for the next 5 years. Unbelievable.
    You know the sad part? I am sure they are all out right now giving their advice on what you should do to deal with the very same crisis they all guaranteed would not happen.

  4. Bruce in Tn says:

    The Schiff video is beyond amazing. Thanks. Absolutely like he had visited the future and reported on it.

    http://paul.kedrosky.com/archives/2008/11/14/homage_to_peter.html

  5. Winston Munn says:

    Actually, Schiff didn’t have to visit the future but only read about and extrapolate from the past – circa 1920′s U.S..

  6. Jojo99 says:

    Great video! Ben Stein section is priceless. This could be a full-time job documenting these guys. Isn’t video great? Straight from the mouth.

    The actual video is here:
    Peter Schiff Was Right 2006 – 2007 (2nd Edition)
    http://www.youtube.com/watch?v=2I0QN-FYkpw

    I took the time to do some transcriptions:

    (0:00) Aug 28, 2006 on CNBC
    Arthur Laffer is incredulous at Schiff’s predictions. Thinks Schiff is “way off-base” when he says the consumer will slow down.
    Laffer (2:20) says “we will have a nice slow down but it’s not going to be a crash”
    ===================
    (2:30) Dec 31, 2006 on Fox
    Q. Will homes be worth more or less in 2007?
    Tom Adions of ReMax – Homes will be up 10%
    Peter Schiff – “Today’s home prices are unsustainable”
    Mike Norman of Bizradio – Also says “up to a 10% rise”
    Then both Norman and Adions break up laughing at Schiff. Where are these guys now?
    ===================
    (4:00) Aug 18. 2007 on FOX
    Ben Stein – “The credit crunch is way overblown”
    Ben Stein – “The financials are being given away they are so unbelievably cheap”
    Ben Stein – The sub-prime problem is a problem but a tiny problem in the context of the economy”
    Ben Stein – It’s a buying opportunity in the entire financials maybe like I have never seen in my entire life”
    Charles Payne “The worse is over”
    Ben Stein ” I think stocks will be a heck of a lot higher a year from now than they are now”
    Cavuto (6:14) – “OK, so you get to buy blue-chip stocks at discount prices!”
    ===================
    (7:50)Dec 29, 2007
    Schiff – The economy is going to be a big issue in the election
    Charles Payne – 1st half of year will be tough but 2nd half will be much better. Housing market will be a lot better along with jobs. Unemployment will be about 4.7%. Predicts DJI will go to 16,000 but the big winner will be Nasdaq
    [lol]

  7. bhaskarch says:

    Barry, not related to this thread but can you please provide a link to the FNJ archives somewhere??

    Regards

  8. CJ says:

    Sorry to go OT on the Schiff video :^) but back onto the bank bailout topic of BR’s post … 110 banks asking for $220 billion is indeed a bracing thought. Here’s what could be going on:

    A. There really are a lot of banks in a mess.

    B. If you were a bank, you’d be crazy not to ask for this free money no matter what shape you’re actually in. It’s the easiest capital you’ll ever acquire — something your employees and shareholders have probably been telling you already.

    C. Both.

  9. jakester says:

    the “Bailout” money needs to go to those that still have a reconcilable balance sheet. Namely taxpayers should be given the money through a rebate for the past 2-3 years of paid income tax. This would greatly improve retail spending and provide a major jumpstart to the economy. Handing over the the cash to insolvent banks and failed companies does ZERO good for the economy and only protects the banksters. The US is already headed straight into depression until there is a viable solution that can be implemented.

  10. BG says:

    harold hecuba, Thanks!

    I agree. Everyone should watch this video and then You will have a better understanding of why this Country is in the mess it’s in.

    We are in dire need of leadership. We have a bunch of goof dicks masquerading around like they know what is going on; when in fact, they are clueless. Add to that the lies, deceit, politics and misinformation and you’re basically fucked!

  11. Bruce in Tn says:

    I read something in Slate today that might get a smile. Our answer is to have 20 year olds borrow money to buy distressed stocks. Our intrepid author thinks that will help them in the long run, and it would help us too…

    http://www.slate.com/id/2204247/

    Why 20-year-olds should invest way more in the stock market, and 50-year-olds, way less.

  12. DeDude says:

    I am not surprised that the insurance companies are trying to get into this pot of money even if they have to purchase a bank as their ticket to the ball. They must be some of the main holders of all this BBB stuff dressed in a AAA rated suit. What happens when all the insurance companies runs out of money. Is there any backstop for annuities, life insurances etc. when that shoe drops?

  13. DP says:

    As easy as it is to criticize the banks, we’re not better as individuals. There is a little game being played right now with Microsoft Live Search – they are offering a cash back program for items purchased via MS Live in a play to get people used to using their search engine. Combined with a special Ebay deal / discount for using Paypal, we have a situation where gift certificates are being sold on Ebay at a premium to their face value, but the buyer actually gets them for less than their face value – everyone wins, except Ebay and Microsoft.

    When Joe the Internet User can figure this out so quickly and now so many people are doing it, it’s hardly surprising that the banks with their economists and experienced traders and their complex IT systems came up with the things they did.

    Speaking of gift certificates, if you have any lying around use them now while you can. It helps you because some of the stores might not be around in 6 months time and it helps the stores because they can book the revenue.