On Obama’s desk is a financial reform bill designed for Wall Street. We do not want one more recession and want to stop helping banks. However, that brings up the issue of which institutions really were bailed out, or benefited probably the most. The public should know who was bailed out since they funded.
Much of the bailout given to Wall Street
According to CNN Money, there were 707 banks that participated within the Troubled Asset Relief Program, or TARP. From those 707 banking institutions, 690 of them had to split $ 40 billion between them. The average for those 690 banks is $ 57,971, 014.49 apiece. The government has been paid back by 13 of the 17 institutions that got many of the bailout given to them. Profitability is shown by the, according to Market Watch, $ 4.8 billion reported in profit by JP Morgan chase in the second quarter.
Main street left struggling
Smaller banks in the CPP, Capital Purchase Program, as outlined by the CNN article, received $ 15 billion of the $ 40 billion. Main street banks weren’t definitively left within the lurch, but the banks which were too big to fail certainly weren’t allowed to. Debts for those who received CPP loans have only been paid by 10 percent so far. Out of the small banks that still owe money from CPP loans, 15 percent have missed at least one payment.
Feed the wolves to conserve the sheep
The financial crash in 2008 still has Wall Street at the heart of it. The financial reform bill demands more responsibility as shown by the $ 550 million fine Gorman Sachs just received from the SEC, and it could be normal to have standards that are strict now. However, what happens if Main street banks go under? Will we have to choose from a small list of institutions that just cost us $ 700 billion or more to look at over our money?
More info about this topic at these websites
CNN Money on TARP
money.cnn.com/2010/07/14/news/economy/Main_Street_banks_TARP/index.htm
CNN on Goldman
money.cnn.com/2010/07/15/news/companies/SEC_goldman/index.htm
Market Watch
marketwatch.com/story/jpmorgan-chase-reports-second-quarter-2010-net-income-of-48-billion-or-109-per-share-on-revenue1-of-256-billion-2010-07-15?reflink=MW_news_stmp
No comments:
Post a Comment