TARP Money

" That banks took money from the federal government in order to save them now life is -- they want to give the money back and tried and the feds saying what might has good. Fences keep -- keep that we don't want to take your money that -- now it's like tainted money and the good thing is there really is there's a local angle to -- sometimes people's eyes glaze over the I think AIG top -- they don't -- this is a gathering glaze over with I don't understand what I want to find out is why the banks who are want to give the money back first so why don't they keep it -- go to foxwoods. -- hot hot hot hot second yeah yeah. Why -- the government taken any time you want to find some OpenId go to Steve's siren that's what we do every day at this time we go to the Boston Globe Steve -- Boston business report. And today's business report was Steve's site is being brought to by the Boston Pops another tradition. Another tradition -- zip. That he he pre never seen a -- cinema you've watched never seen the cops say that again I have -- save this sound this is evidence of degraded life I've never been nor -- are gonna take you. Margaret Christmas -- everyone is on us like mr. I saw the Boston Pops up relatively normal practices. Yeah well let's talk about guns where we -- your desperate and now we're desperate you always use Sox are doing we're desperate need of Steve senator you've never -- welcome messiah hasty everybody -- idea how right out. A a they tell us about these local banks we read in the paper today. Your paper by the way. That the local banks Iraq kind of lining up he had the saudis are ready to go to -- Davis are likely is what's gonna gonna."

" Plus the banks want to get their money back. There are. There are a lot of banks here in Massachusetts that took. Relatively small amounts of money -- they're not the billions and billions of dollars although. State Street is one example of that that they -- taking big money but for the most part would argue about little banks like Rockland bank and trust and places mercantile bank -- it took anywhere from ten to 100 million dollars something like that. And they've discovered that you know the world treats them like bombs when they -- because they have the money -- so badly and they -- Justices don't get it out of their hands."

" Where you say when a bank goes out to do business that people in might do business with get concerned that they have TARP money."

" Now I think it's more social -- that that they the -- I cant I how many. Small bankers and their representatives. -- called me and said that you know they're just. Completely perplexed and dismayed by the fact that you know people who. You know were seen and considered themselves -- of Elizabeth society. In all of a sudden we're looked upon as you know that the root of evil and people who had done stupid greedy things and got the world in trouble and they. -- they hated the whole idea of a bail out in the idea being associated with -- and once they took the money it was as if it was. You know -- positive that they were guilty of something."

" This film like debts. Prototypical love welfare mom who give feels the yes the stairs the unwelcome stance."

" Now you know in -- there's money. Serbs of very important purpose that the time that they took -- I think they were very wise to take it department. It is some evidence that regulators were leaning -- a lot of banks do if in doubt take the money but. I think those times are passed to some degree for a lot of -- not all of them."

" You -- I did Tim Geithner was testifying in front of the watchdog panel yesterday that congressional panel. And he was saying they were saying why are you letting the banks give the money back and he says. I have to make the decision based on the soundness of the financial situation of the bank."

" Right right. Well I think that's certainly true particularly in the big banks and there's a lot of banks that want to put aside from the sort of social stigma that goes with this. As we know there are a lot of rules that have been attached to this about what they can do what they can't do particularly when it comes to paying people and they don't like all that -- justice and get off that -- as soon as possible. But it Geithner to some degree has -- point here where. The entire. Emphasis injecting money into banks -- to make sure that they remained stable and to be. Convinced that -- war in -- stable as an important thing -- you look at a lot of these smaller banks. They were not you know they're not those sort of in this city group category by any stretch of the imagination were the reasons I think it was a good idea at the time. Was which back last -- we were in this really extraordinary period where no one knew what was going to happen that. Credit markets all over the world would literally. Ceasing to function and when you're thank you need. Access to cash liquidity and that was not entirely clear whether you're a big -- small bank. That you could get back -- action if you needed it any point in Simon. So here comes the treasury and says what what did you take ten million box just to have your back pocket and did I I think it was incorrectly portrayed at the time. As well here's ten million to -- land specifically at that was never the real purpose of that money. But if you go -- are what your take this questions so if you need the cash it's here that was a good thing that was important thing if it turns out they didn't need it but. You know we're you're talking in a completely different contexts in the last hour that. You know real time decisions are much artery you don't know what's gonna happen next and that was the case here and so. I think it was a good idea for the to take the money I think it's not so bad an idea to let them give it back at this point is those crisis moments are passing. And these of the Rockland trust of the world are not teetering on the part of any kind of break."

" So stayed the social stabler is bothersome to them they're no longer teetering on the bring the world has the -- the world of credit and finances. Achieved some sense of stability. Yet the economy is in the tank and with talked about it each and every day with you out of these banks give that money back. At such it in such weak economic time without jeopardizing the strength of their balance sheet doesn't that bad banking commission are the FDIC a somebody. Say -- whoa whoa whoa wait a minute. Social stigma to be damned it's it's more important that you be appropriately capitalized."

" Well I think this goes back to the the big -- their reluctance to two you don't just automatically receive. Bank money back from the banks. Aaron. You know I think that there are a lot of these smaller banks. They have plenty of capital. At this point in that is accessible for them and they don't that's okay I think but I do agree that there have been some process. That you have to look and make sure that that is in fact UK and it you know when you get to the larger banks -- the only one that's really in the game here in terms of of giving that money back -- Goldman Sachs they went out and -- the -- stock a couple of weeks ago raised five billion dollars they had extra money and they are hoping to give all their government money back but. Among them the bigger ones otherwise the Bank of America's cities all those people nobody's talking about they're giving their money back if an -- of Boston's. State Street. In the position to to get their money back and not even talking about it Ron low to see Yost is treated in the paper today is today. You know -- get all that money back but you know the rights -- this is an area."

" All right so we're it it's gonna take awhile to undo the affiliation with the government and one of the fears I think must be. I bet there's gonna be some control. Debt. -- you know like salary controls and things like that the banks just don't want to have anything to do it."

" Absolutely I mean salary get all the headlines they're a lot of rules that are being attached this money the salary. -- and limitations are. Are at the single -- Hateful things. It's -- and you know they've. Want to go up on their own without our money that they're business in the end. Within limits of what they pay people but. There are other issues too in terms of restrictions to what they can and can't do it. And it's true they don't like that and you know we want our money back to -- by the way the money that we're talking about -- we. On our side on the taxpayers -- the ledger you know we were bitching all the time about how we're going to lose all this money we're spending a fortune in this. You know we're making. An interest rate that is hard to earn anywhere else in the market right now on this money and also. Particularly when it comes to the publicly traded banks. There are stock pickers that come with this the this these grants and in terms of -- that ultimately. And some maybe and certainly not all but some of the cases were going to end up making quite a bit of money so. You know we're getting -- we're getting our cash back or we will and we made a pretty decent return on the early stuff. In some examples down the road we're gonna get a closed on these things but there are all losers by any."