Wednesday, October 21, 2009

Bailing out small banks and small businesses.

Jim Kuhnhein reports on Obama's new push to have TARP cover small banks and small businesses. There is also some talk of extending the TARP program out to October of 2010.

Of course, the thing to worry about now is whether or not the small businesses and small banks that accept any of this bailout money will become subject to the same intimidation tactics that they feds have been playing against BofA.

WASHINGTON — President Barack Obama wants smaller community banks to have greater access to the government's $700 billion financial rescue fund to assist small businesses that are still suffering from a prolonged credit crunch.

Obama on Wednesday plans to announce a package of initiatives designed to increase lending, including a request that Congress increase caps for existing Small Business Administration loans, the administration said.

The new effort comes as the administration is under pressure from liberals to shift the massive bailout fund's focus away from helping big financial institutions and toward homeowners and small businesses. But it also comes as Republicans press Obama to end the rescue program and use bank repayments to reduce the national debt

The trouble with this is that once you accept the Devil's coin, you have to dance to the Devil's tune.

BofA is a prime lesson in the problems with that.

[Hat Tip RealWest @ the Corresponce Committee]

1 comment:

  1. Hey Syrah - thanks for the Hat Tip, but you ain't seen nothing yet:
    " Administration plans big pay cuts at bailout firms
    By MARTIN CRUTSINGER (AP Economics Writer)
    From Associated Press
    October 21, 2009 4:06 PM EDT
    WASHINGTON - The Obama administration plans to order companies that received huge government bailouts last year to sharply cut the compensation of their highest paid executives, according to a person familiar with the decision.

    The seven companies that received the most assistance will have to cut the annual salaries of their 25 highest-paid executive by an average of about 90 percent from last year, said the person, who spoke on condition of anonymity because it has not been announced.

    This person said Wednesday that the Treasury Department will announce the deep pay cuts within the next few days."

    Now why would I be wondering why the LEFT,er, Government, would be offering TARP help for
    smaller banks, hmmmm?
    Could it be that for the LEFT it's all about power? If those smaller banks take TARP dough, they will wind up being treated the same way, just so the LEFT can control ALL of the Banking Industry.
    Oh and where does the Constitution provided that the Federal Government has any right to restrict pay at private businesses absent express language to that effect in the legislation? The answer is it doesn't; TARP was passed without much thinking about little things like: accountability for the money borrowed (i.e., what it could be used for) and how it was that the Federal Government could decide WHEN banks borrowing TARP funds could repay those loans and indeed refused several attempts by several banks to repay the TARP loans until the Feds had come up with a "Stress Test" first?
    This isn't about GOVERNING, IT'S ABOUT POWER, pure and simple!


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