TARP Watch

#1
V

VolsNSkinsFan

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#1
I wanted to start a thread regarding what out tax payer dollars are being spent on in the TARP. A critical report regarding how this money is being spent is coming out tomorrow, and I wanted to call out any shenanigans. Please feel free to post articles and then comments can be made... The more ridiculous the better

I will start with Morgan Stanley

The Curious Capitalist - TIME.com Blog Archive There’s always money in parking meters

The city of Chicago is on the cusp of signing a contract to let a Morgan Stanley-backed consortium collect money from its parking meters for the next 75 years.
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In exchange for giving up three generations of fairly dependable meter revenue, Chicago gets $1.157 billion today.
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Chicagoans, used to paying 25 cents an hour downtown, will see the rate go up to $1 an hour next month, and to $2 an hour by 2013.
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Morgan Stanley is another beneficiary of Tarp funds, having received $10bn from the programme
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Oh and what do they plan on doing with these "rights"??

Kevin Drum, over at Mother Jones, anticipates that Morgan Stanley might "package up the parking meter revenue, securitize it, roll it into an asset-backed CPMO (collateralized parking meter obligation), put the super-senior tranche into an off-balance-sheet vehicle, hedge the rest via a CDS-backed synthetic CDO, and then resell the whole thing within 12 months to a sovereign wealth fund in Dubai for $5 billion." Clever, Kev. I like it.
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:ermm:
 
#2
#2
Also...

US Treasury 3-month bill yield below zero for first time

AFP: US Treasury 3-month bill yield below zero for first time

All the buyers of the 28-day obligations agreed to the zero rate offered in a sale where demand was four times higher than supply, the Treasury said on its website.
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On Monday the Treasury issued 27 billion dollars in three-month bills at an interest rate of 0.005 percent, which had been the lowest rate since the bonds were first issued in 1929.
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Point of no return: Interest on T-bills hits zero: Financial News - Yahoo! Finance


So basically the US Gov is giving these banks billions and they are turning around and buying billions of US Government Debt.

:unsure:
 
#3
#3
Who needs regulation?

This is a couple of interesting posts for the group that hangs out here.

:popcorn:
 
#4
#4
It was regulations that forced banks to give loans to unqualified buyers. Had free market capitalism been allowed to work, those people would have stayed renters until they were qualified.
 
#5
#5
MG1968 said:
It was regulations that forced banks to give loans to unqualified buyers. Had free market capitalism been allowed to work, those people would have stayed renters until they were qualified.
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That wasn't right either, the middle ground between regulation and free market capitalism was lost is my point.

On one end we have government forcing banks to give out bad loans....and on the other....well, if you want to support represive middle east governments and nasty playboy sheiks, just park your car in downtown Chicago.

The whole thing is ridiculous.
 
#8
#8
#9
#9
Pay Raise for Judges included in $25 Billion bill to bailout US Automakers

Pay raise for judges tucked into bailout plan - Yahoo! Finance

The raise -- labeled a cost of living adjustment -- would bring U.S. District court judges up to par with members of Congress, who will receive an almost $5,000 boost on Jan. 1. District judges and lawmakers now earn $169,300 a year but are expected to be awarded a 2.8 percent raise next year, said Dick Carelli, a spokesman for the Administrative Office of the United States Courts.
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Senate Majority Leader Harry Reid, D-Nev., insisted that the judicial pay raise go into the automaker loan measure.
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#10
#10
I still don't understand how a bill that is deemed as necessary and urgent as this one can't stand on it's own. I doubt I will ever understand it
 
#12
#12
VolsNSkinsFan said:
$1.6B Of Bank Bailout Went To Execs, AP: Money Given To Struggling Banks Went Toward Bonuses, Stock Options, Country Club Memberships - CBS News
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From the above article:

The total amount given to nearly 600 executives would cover bailout costs for many of the 116 banks that have so far accepted tax dollars to boost their bottom lines.
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...ridiculous if true.

But hey, they do, afterall, have educated and efficient jobs. B!tch when the tax bracket goes up for these guys, but fully expect socialism to kick in when the going gets tough. The rich get richer in the name of capitalism, and maintain the status quo through socialism when it doesn't work out fo them.

I understand the argument that people lost money and jobs. I just wish I could get a 7 and 8 figure bonus for watching a company go down under my watch.

This is just as irritating as congress getting their automatic raise this year.
 
#13
#13
rjd970 said:
From the above article:



...ridiculous if true.

But hey, they do, afterall, have educated and efficient jobs. B!tch when the tax bracket goes up for these guys, but fully expect socialism to kick in when the going gets tough. The rich get richer in the name of capitalism, and maintain the status quo through socialism when it doesn't work out fo them.

I understand the argument that people lost money and jobs. I just wish I could get a 7 and 8 figure bonus for watching a company go down under my watch.

This is just as irritating as congress getting their automatic raise this year.
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So the head of M&A, who has nothing to do with the mortgage or risk capital side of the business, should forego his bonus?

Clearly some bonuses should be withheld, bit many are doled out by the compensation committees for talent retention purposes. It is essentially a fixed cost in investment banks.
 
#14
#14
BigPapaVol said:
So the head of M&A, who has nothing to do with the mortgage or risk capital side of the business, should forego his bonus?

Clearly some bonuses should be withheld, bit many are doled out by the compensation committees for talent retention purposes. It is essentially a fixed cost in investment banks.
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No, Of Course, and True

Some of these Bonuses are paid out to prevent "Poaching". The businesses that are actually worth a dam, are worth something because of the people running them.
 
#15
#15
Figured I would bring some good news to this thread...


Bank of America Corp. (BAC) on Tuesday said it made its first payment to the U.S. government due under the Troubled Asset Relief Program - totaling $402 million - in connection with the $45 billion in government investments the bank received from late 2008 through early 2009.
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Bank Of America Makes $402 Million TARP Payment To US Government
 
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