Comments on: Recall Why TARP Funds Were Necessary

By: Obama’s Regulatory Proposals — Smarter or Just More? | Bailout and Financial Crisis News

Thu, 18 Jun 2009 07:40:22 +0000

[...] Barry Ritholtz’s suggestions for financial reform, which he posted in this article on his site, The Big Picture . In addition to Barry’s list, I proposed the following suggestions in a commentary posted later [...]

By: Financial Crisis Inquiry Commission | The Big Picture

Financial Crisis Inquiry Commission | The Big Picture — Sun, 24 May 2009 13:12:45 +0000

[...] is weird: On Wednesday, May 20, (Recall Why TARP Funds Were Necessary) I wrote the following: “Lastly, I would like to see a bi-partisan, Blue Ribbon panel put [...]

By: Cheap warrants « All the dull stuff

Cheap warrants « All the dull stuff — Fri, 22 May 2009 17:07:10 +0000

[...] 5/20: Barry Ritholtz is now on top of this. I really hope it gets traction. Today I will call my [...]

By: CaptainNed

CaptainNed — Thu, 21 May 2009 05:10:02 +0000

OK, this regulator from a small New England state doesn’t share the vox populi opinion over the banking system. The mega-banks have never tried to compete here and have precious little presence here, so their panjandrums aren’t on my radar screen. The banks in my state are all healthy in both ROAA and capital and they never invested in the mortgage mess either directly or through purchasing junk securities.

You New Yorkers need to understand that the vast swath of community banks never took part in the market manipulations that brought us to our current mess. Your City centrism and belief that all US economic activity is funded through the City banks only confirms your inability to dissociate stock price fluctuations from prudent management decisions.

By: TheReformedBroker

TheReformedBroker — Thu, 21 May 2009 00:33:56 +0000

i vented about this yesterday, their biggest concern with TARP is, once again, compensation….two short months ago, every one of these fucking stocks was headed to zero, now they are back to be worried about the quickest way to start stuffing their pockets again, without so much as a thank you to the folks in “flyover” country who saved them from themselves…

the whole thing sucks.

By: call me ahab

call me ahab — Wed, 20 May 2009 23:38:20 +0000

jc Says:

“Of course with the hundreds of billions of guarantees CITI, AIG and BAC can sidestep more TARP bailouts since the guarantees aren’t part of TT’s limited budget. ”

i thought with the payback there was no more guarantees- am I wrong?

By: W T F

W T F — Wed, 20 May 2009 23:27:51 +0000

Regarding institutions that want to withdraw from TARP: institutions that are too big to fail (TBTF) should not be allowed to withdraw from TARP until new laws are implemented to allow the FDIC (or some other government agency) to take over and “resolve” TBTF institutions.

Once those new laws and regulations are in effect then any institution should be free to withdraw from TARP once it meets the government’s exit criteria. The government’s exit criteria should require that the party withdrawing renounce ALL government subsidies. This includes FDIC guarantees of the TBTF institution’s bond offering, participation in the TALF, US government guarantees related to money market funds, and participation in all other Fed-subsidized programs (with the exception of the PPIP) at the very least.

Once a TBTF institution withdraws from TARP if that institution subsequently encounters financial stresses then that institution no longer qualifies for participation in the TARP and instead would be subject to resolution under the new regulatory scheme.

In short: you want out of the pool – you’re out – no double dipping. ‘Nuff said.

By: thefinancedude

thefinancedude — Wed, 20 May 2009 23:12:33 +0000

Ritholz,
Why in the world would they form this partisan committee? They can’t! If they do that, the graft reality becomes paramount as we discover they’re mostly all in on this! I got a kick out of the vetting process when Obama was bringing in the transfused blood through the Treasury. If the fraud can be discovered simply by nominating all these people to unelected positions, why don’t we just nominate them all so we can find all the dirty promises and hidden money stashed in those freezers! Why isn’t all of Congress going through the same vetting process year after year to prove their transparency? Better question: Why are we still JUST talking about this? What happened to dem tea parties? Oink, Oink…

By: harold hecuba

harold hecuba — Wed, 20 May 2009 22:33:08 +0000

crises passed? i’m afraid the crises still lies ahead.

By: jc

jc — Wed, 20 May 2009 22:23:32 +0000

Good money after bad, the relatively healthy banks will repay their gifts without penalty and the basket cases will keep taking, the repayments will allow Tiny Tim to keep throwing money down the shitt hole without going back to Congress to beg for more – unless the CA RE meltdown takes out a couple more of the immortal 19. Of course with the hundreds of billions of guarantees CITI, AIG and BAC can sidestep more TARP bailouts since the guarantees aren’t part of TT’s limited budget. GMAC first, CITI next, then BAC…

The Treasury Department is poised to inject more than $7 billion into GMAC, the first installment of a new government aid package that could reach $14 billion, according to people familiar with the matter. The injection is designed to firm up the company’s balance sheet and allow it to grant loans for car purchases at General Motors and Chrysler.

The increasing infusion of taxpayer money into GMAC could turn the federal government into a large — and potentially majority — shareholder in the company, which is now owned by GM and a group led by private-equity firm Cerberus Capital Management.

http://online.wsj.com#mod=djemalertNEWS