OK, so the feds required "stress tests" of 19 hand-picked banks, and some analyists are scratching their heads as to why this was even necessary. Was it a prelude to another round of TARP? Regardless, all the results were supposed to be released at once except that some were leaked.
On top of that we knew that GMAC was getting a pass anyway because they were tapped by the feds as the guarantor of the Chrysler package - something that couldn't very well happen over a 4-year period if they weren't going to be around - meaning that the feds were willing to keep them pumped up with cash.
Now, Bank of America needs another $34 billion. Or else what? They fail? Goodbye! However, they feds have vowed that they will not allow Bank of America to fail.
Imagine that, our government won't let companies fail!
Would someone please change the song? This one is getting tiresome.
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Beginning to seem that capitalism has a new rule - "No one fails"**** Except the little man!
Gary,
Correct. What shall we call this? Maybe extreme capitalism? Maybe capitalism no more? :)
Steve
Steve
I believe its an attempt to keep the banks from paying back TARP money by telling them they have to keep so much in Reserves...Paul,
That's an angle I hadn't thought of - I think you hit it square. Thanks. :)
Steve
Steve, there hasnt been any mention of those banks getting any more TARP money. In fact the stress test says they need to "raise" more capital, which I take to mean, they had better friggin find a way to get the money themselves. Lets not jump to conclusions here. K?
Steve - listen to the details to find the intent. If they can't raise the funds the fed is going to convert preferred stock (which benefits us, the taxpayer the most) to common in order to take control of the banks. They are already hinting giving not so subtle demands to get rid of the current officers. The "we don't want to run the banks" is like an abuser telling their spouse of child "I don't want to hurt you but it's for your own good"!
Scrrew them. Actually, F*$k B of A. They attempted to raise my interest rate from 7.99% to 24.99%. I use (make that used) the BofA Card for my business. I flush times I paid it off. In leaner times, I have carried a balance. So sad, BofA. I have 6 properties under agreement and my balance will be ZERO in a month or so. Your loss.
Terry,
I think that the feds are very carefully orchestrating this so that the banks will no choice but to request more money which will gladly be invested in them for more control and ultimate takeover. :)
Steve
Mike,
Excellent. Unfortunately the feds are dazzling a lot of people with their rhetoric and fancy footwork - but not all of us. :)
Steve
Scott,
I agree. B of A is a very abusive bank that cares only about themselves and not their customers. Customers only get in the way for them. :)
Steve
Steve - I think you know my thoughts on the subject. Let the market determine who fails. Tired of propping up banks that made bad business decisions? You betcha.
Ryan,
I really appreciate your comments, and it's going to take a lot us voicing our concerns to make a dent. :)
Steve
Steve- I agree. This mess is getting old. I am tired of it all.
Kevin,
It is getting so old, but I guess that not enough of us are tired of it to get the attention of those who count. :)
Steve
Steve - We agree that this scenario is really getting old and gree with Ryan - if they fail, let them fail!
Mary
Bruce and Mary,
I'm not sure how many there are of us who feel this way - probably more than we think - but clearly not enough. Thanks. :)
Steve