Where'd the bailout money go?

[bullypulpit]

Despite receiving billions in US tax dollars to bail-out the banking industry, the recipients of that largess are unwilling or unable to provide an accounting.

<blockquote>It's something any bank would demand to know before handing out a loan: Where's the money going?

But after receiving billions in aid from U.S. taxpayers, the nation's largest banks say they can't track exactly how they're spending the money or they simply refuse to discuss it.

"We've lent some of it. We've not lent some of it. We've not given any accounting of, 'Here's how we're doing it,'" said Thomas Kelly, a spokesman for JPMorgan Chase, which received $25 billion in emergency bailout money. "We have not disclosed that to the public. We're declining to." - <a href=http://hosted.ap.org/dynamic/stories/M/MELTDOWN_SECRETS?SITE=AP&SECTION=HOME&TEMPLATE=DEFAULT>AP</a></blockquote>

And it seems unlikely that we will ever receive any accounting. Quite simply, this is one final example of the Bush administration looting the treasury for the benefit of a few at the expense of the rest of us. And Senate Republicans insisted on all kinds of strings when the auto industry came to them seeking a mere $14 billion. Where was their vaunted fiscal conservatism when it came to bailing out their campaign contributors in the banking and securities industries.

[Nukeman]

Despite receiving billions in US tax dollars to bail-out the banking industry, the recipients of that largess are unwilling or unable to provide an accounting.

<blockquote>It's something any bank would demand to know before handing out a loan: Where's the money going?

But after receiving billions in aid from U.S. taxpayers, the nation's largest banks say they can't track exactly how they're spending the money or they simply refuse to discuss it.

"We've lent some of it. We've not lent some of it. We've not given any accounting of, 'Here's how we're doing it,'" said Thomas Kelly, a spokesman for JPMorgan Chase, which received $25 billion in emergency bailout money. "We have not disclosed that to the public. We're declining to." - <a href=http://hosted.ap.org/dynamic/stories/M/MELTDOWN_SECRETS?SITE=AP&SECTION=HOME&TEMPLATE=DEFAULT>AP</a></blockquote>

And it seems unlikely that we will ever receive any accounting. Quite simply, this is one final example of the Bush administration looting the treasury for the benefit of a few at the expense of the rest of us. And Senate Republicans insisted on all kinds of strings when the auto industry came to them seeking a mere $14 billion. Where was their vaunted fiscal conservatism when it came to bailing out their campaign contributors in the banking and securities industries.Guess what moron the senate and house are full of DEMS who approved all the bailout money. It was the REP who put a stop to it with the unlimitted funds to the auto industry. They saw how the DEMS fucked up the banks and insurance industry and insisted on "strings" and "accountability".

[PostmodernProphet]

Where was their vaunted fiscal conservatism when it came to bailing out their campaign contributors in the banking and securities industries.

I have wondered the same thing....where WAS the conservativism......they acted like a pack of shit-worthless Democrats.....who by the way had no conservatism to deny when they bailed out THEIR campaign contributors in the banking and securities industries (don't forget that Dodd and Obama were the two biggest recipients).....I will never forgive Bush for folding to Reid and Pelosi on the bailout.....

[avatar4321]

to all those Obama contributors.

[5stringJeff]

You can thank the Washington establishment - both GOP and Dem - for the lack of accountability for how Wall Street is using taxpayer money.

[Kathianne]

You can thank the Washington establishment - both GOP and Dem - for the lack of accountability for how Wall Street is using taxpayer money.

I agree. I really want to know how much Goldman Sachs received. I think what Paulson has done should be considered criminal.

[manu1959]

they used the money to stabalize their loan to debt ration and balance their federal reserve checking account.....

if they are loaning any money they are securing it themselves as no security and equities firm i know is buying paper......

[5stringJeff]

I agree. I really want to know how much Goldman Sachs received. I think what Paulson has done should be considered criminal.

No joke. Talk about a bald-faced power grab.

[manu1959]

in order to free up credit wouldn't you have to give goldman sachs money so they would secure the debt that banks loan.....

[5stringJeff]

in order to free up credit wouldn't you have to give goldman sachs money so they would secure the debt that banks loan.....

Credit doesn't need to be "freed up." Loans would be made, at market-determined interest rates, without free money from the government.

[manu1959]

Credit doesn't need to be "freed up." Loans would be made, at market-determined interest rates, without free money from the government.

i am sure you know the credit market is locked ..... why will securites firms not buy any loans no matter the rates or terms .... and why will banks not make loans .....

[5stringJeff]

i am sure you know the credit market is locked ..... why will securites firms not buy any loans no matter the rates or terms .... and why will banks not make loans .....

Because the government is forcing interest rates down to a point below what banks would normally loan at - essentially forcing the banks to make unprofitable loans or loans with too much risk - which is how this thing got started.

[manu1959]

Because the government is forcing interest rates down to a point below what banks would normally loan at - essentially forcing the banks to make unprofitable loans or loans with too much risk - which is how this thing got started.

i am sure you know the banks set the rate that money is traded and loaned at not the fed chairman ...... i imagine you are refering to the feds flooding the market with money thus increasing supply and driving rates down .....in any event banks won't loan money that can not be secured.....and securites and equities frimsare not buying debt ..... just for fun go try to get a car loan ..... or an unsecured line of credit .....

and i agree this all got started by making bad loans ......

the real question is how long will it take to flush the bad paper out of the system .....

[emmett]

What Jeff said is somewhat true though.... the fed being down doesn't help anything! It whores up the money market in a sense by degrading prospective earnings.

I think that is what Jeff meant in a way!

Auto loans are stagnant! Literally frozen. Only 750 and up scores are getting new car loans and they don't really need the credit to get them. They certainly arent't loaning anything that has a rate attached to it! No bank on earth will write a ten percent loan (which would be stupid to take). Two years ago, two thirds of all auto loans were in excess of ten percent (Bet you didn't know that one!)

The money was used to shore up already existing losses. There has been no new investment in loans to any sustance. I can tell you that several banks owe our company for repossession services, much of that paper has reached 180 days. What can we do? NOTHING! The same banks that aren't paying us are holding paper on our trucks and equipment! Hmmmmmmmm!!!!


Making bad loans of course is what started this snowball. Problem is, comes back to government intervention again. Banks who refused to loan to certqain individuals risked civil litigation, influences by politicians, fines and the loss of top side funding packages.

Here soon I imagine we will admit to ourselves that the house is on fire and we are standing in the front yard trying to put it out with a flame thrower!!!!!

[DragonStryk72]

What Jeff said is somewhat true though.... the fed being down doesn't help anything! It whores up the money market in a sense by degrading prospective earnings.

I think that is what Jeff meant in a way!

Auto loans are stagnant! Literally frozen. Only 750 and up scores are getting new car loans and they don't really need the credit to get them. They certainly arent't loaning anything that has a rate attached to it! No bank on earth will write a ten percent loan (which would be stupid to take). Two years ago, two thirds of all auto loans were in excess of ten percent (Bet you didn't know that one!)

The money was used to shore up already existing losses. There has been no new investment in loans to any sustance. I can tell you that several banks owe our company for repossession services, much of that paper has reached 180 days. What can we do? NOTHING! The same banks that aren't paying us are holding paper on our trucks and equipment! Hmmmmmmmm!!!!


Making bad loans of course is what started this snowball. Problem is, comes back to government intervention again. Banks who refused to loan to certqain individuals risked civil litigation, influences by politicians, fines and the loss of top side funding packages.

Here soon I imagine we will admit to ourselves that the house is on fire and we are standing in the front yard trying to put it out with a flame thrower!!!!!

It looks more like we grabbed the kerosene, thinking it was the water jug, but same idea.

Actually, since we in fact have a federal reserve bank, the government actually can determine interest rates, and since the government never has to worry about getting the money back, really, since it can simply give itself more, it can offer far lower interest rates than any bank that currently exists, forcing the banks to take on loans that are either at lower interest rates than they can afford, or giving out the loans to people whose credit is tenuous at best.

[manu1959]

It looks more like we grabbed the kerosene, thinking it was the water jug, but same idea.

Actually, since we in fact have a federal reserve bank, the government actually can determine interest rates, and since the government never has to worry about getting the money back, really, since it can simply give itself more, it can offer far lower interest rates than any bank that currently exists, forcing the banks to take on loans that are either at lower interest rates than they can afford, or giving out the loans to people whose credit is tenuous at best.

the government does not set the federal insterest rate ... it is a target rate and it is set by the "banks" themselves and it is for money loaned to balance individual federal reserve accounts that each bank have .... the loans banks give the pople have nothing to do with the fed rate......google is your friend....