Saturday, April 18, 2009

Bankrupt banks, chapter...I can't even remember how many we've had

A story in the Washington Post caught my eye: apparently the big banks that were ecstatic to sweep in bailout billions from the TARP funds from the Treasury Department have decided they don’t want our taxpayer money if there are (shock, horror) strings attached.

Jamie Dimon, CEO of JP Morgan Chase went so far as to refer to the $25B in money from the Treasure Department as “a scarlet letter”. He’s promised quick repayment and abstaining from taking any more. Others are quietly following suit.

Well, you might say, good riddance to bad rubbish. But you’d be wrong.

Because they’re not gone. They’re still holding out their goodie bags for filling from Federal funds that don’t come with restrictions on things like executive pay and bonuses, and a requirement for transparency in processes. They can and will continue to “borrow” from the Fed and take advantage of FDIC guarantees of any crack-brained loans they decide to issue. Those sources don’t impose any standards for prudent operations as conditions of getting the largesse.

Soooo. Let me get this straight: these billion-dollar bums don’t need the money if, in exchange, they have to promise to show any modicum of restraint? But they do need it if there are no conditions?

Uh, did our government just fall off a turnip truck?

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