One year later, banks not paying TARP dividends, not lending

[brentspeak]

I'll refrain from reminding anyone just who it was on both sides of the aisle who pushed for the greatest fleecing/highway robbery of the American people in the nation's history.

http://www.usatoday.com/money/industries/banking/2009-10-07-banks-tarp-dividends_N.htm

The U.S. taxpayers' investments in smaller banks are increasingly at risk.

In a sign that more banks are under great pressure from the recession, 34 financial institutions did not pay their quarterly dividends in August to the Treasury on funds obtained under the Troubled Asset Relief Fund (TARP). The number almost doubled from 19 in May when payments were last made, and also raised questions about Treasury's judgment in approving these banks as "healthy," a necessary step for them to get TARP funding.

"The banks are not paying their dividends because they are worried about preserving capital," says Eric Fitzwater, associate director of research at SNL Financial.

http://economix.blogs.nytimes.com/2009/10/07/did-tarp-increase-lending/

Economic theory casts significant doubt on the claim that public purchases of bank equity would cause banks to lend more. Now the government’s own watchdog confirms the theory...

[Orwellian_Ghost]

1. Bump

Thanks for this.

Chirps all 'round...

[slipslidingaway]

2. knr nt

[chimpymustgo]

3. "the greatest fleecing/highway robbery of the American people in the nation's history."

Till the next one.

[DJ13]

4. .......

[HCE SuiGeneris]

5. Yes,

please.

:kick:

[Peacetrain]

6. Take it up with Bush....

[mkultra]

7. EVERYONE PANIC!

[Zynx]

8. That's mainly because of the smaller institutions on the dividend front.

The big recipients have been paying on their dividends. The top 5 list, with the exception of AIG of course, does not include large banks.

[anonymous171]

9. Bankers are a bunch of lying scum. nt

[Dappleganger]

10. kick and rec

[QC]

11. THANK GOD IT PASSED!!!

Remember that?

[HamdenRice]

12. Notice it says "smaller banks"

After the gigantic sums invested in the big banks -- in the tens of billions range -- which are paying quarterly dividends, TARP began investing in hundreds of small, regional banks. I thought that was what people wanted?

Some of these investments are in the range of hundreds of thousands, to a few million dollars. Below is a list of the bottom of the TARP list sorted by size of investment.

If they miss their quarterly dividend, the missed dividend is added to the principle amount of the TARP, so until the bank actually goes under -- if it does -- that doesn't mean that the TARP will not get repaid.

http://bailout.propublica.org/main/list/index

Wescom Central Credit Union (Details) Mortgage Servicer Calif. $870 thousand
IBM Southeast Employees' Federal Credit Union (Details) Mortgage Servicer Fla. $860 thousand
Gregg Bancshares (Details) Bank (Private) Mo. $825 thousand
Banner County Bank Corp (Details) Bank (Private) Neb. $795 thousand
First Federal Savings and Loan (Details) Mortgage Servicer Wash. $770 thousand
First State Bank of Mobeetie (Details) Bank (Private) Texas $731 thousand
Farmers State Bancshares (Details) Bank (Private) Kan. $700 thousand
Midwest Regional Bancorp (Details) Bank (Private) Mo. $700 thousand
RoundPoint Mortgage Servicing Corporation (Details) Mortgage Servicer N.C. $700 thousand
Horicon Bank (Details) Mortgage Servicer Wis. $690 thousand
Green City Bancshares (Details) Bank (Private) Mo. $651 thousand
Corning Savings and Loan Association (Details) Bank (Private) Ark. $638 thousand
Butler Point (Details) Bank (Private) Ill. $607 thousand
Lake City Bank (Details) Mortgage Servicer Ind. $600 thousand
Colonial American Bank (Details) Bank (Private) Pa. $574 thousand
The Victory Bank (Details) Bank (Private) Pa. $541 thousand
SEFCU (Details) Mortgage Servicer N.Y. $540 thousand
Community Bancshares of Kansas (Details) Bank (Private) Kan. $500 thousand
Bay Federal Credit Union (Details) Mortgage Servicer Calif. $500 thousand
Schools Financial Credit Union (Details) Mortgage Servicer Calif. $480 thousand
Kirksville Bancorp (Details) Bank (Private) Mo. $470 thousand
Farmers & Merchants Financial Corp (Details) Bank (Private) Kan. $442 thousand
Oakland Municipal Credit Union (Details) Mortgage Servicer Calif. $430 thousand
Haviland Bancshares (Details) Bank (Private) Kan. $425 thousand
Mission Federal Credit Union (Details) Mortgage Servicer Calif. $370 thousand
Stanford Federal Credit Union (Details) Mortgage Servicer Calif. $370 thousand
Metropolitan National Bank (Details) Mortgage Servicer Ark. $350 thousand
Allstate Mortgage Loans & Investments, Inc. (Details) Mortgage Servicer Fla. $310 thousand
The Freeport State Bank (Details) Bank (Private) Kan. $301 thousand
Yadkin Valley Bank (Details) Mortgage Servicer N.C. $300 thousand
Glass City Federal Credit Union (Details) Mortgage Servicer Ohio $290 thousand
Lake National Bank (Details) Mortgage Servicer Ohio $250 thousand
Farmers State Bank (Details) Mortgage Servicer Ohio $80 thousand
Technology Credit Union (Details) Mortgage Servicer Calif. $70 thousand
Central Jersey Federal Credit Union (Details) Mortgage Servicer N.J. $40 thousand
Citizens First Wholesale Mortgage Company (Details) Mortgage Servicer Fla. $20 thousand

[mkultra]

13. there is no noticing amongst the leftbeckians