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How Bailout Money Effects Operations in a Profitable Bank

TexasBred

Well-known member
Note that this is a PROFITABLE bank which did not solicit the governments investment. Now "Barney" wants them to answer to him.


Another bank with bailout money is partying all the way to the banquet.

Chicago-based Northern Trust was blasted Tuesday for accepting $1.6 billion in taxpayer dollars last November and spending big bucks hosting lavish events with A-list entertainers in Los Angeles last week.

Sheryl Crow, Chicago and Earth, Wind & Fire played at three private, bank-sponsored bashes as clients and employees dined on seared salmon, Angus fillet and black truffle cheese, reported TMZ.com.

Guests flown in for the Northern Trust Open golf tournament enjoyed deluxe accommodations at posh hotels, including the Ritz-Carlton and Beverly Wilshire. Gift bags included blue Tiffany & Co. boxes with white bows.

"Northern Trust is a business that earned operating net income of $641 million last year," the bank said in a statement, defending itself as a "healthy" business.

"Northern Trust did not seek the government's investment, but agreed to the government's goal of gaining the participation of all major banks in the United States," the bank said.

Still, Rep. Barney Frank (D-Mass.), chairman of the House Financial Services Committee, called on the bank to immediately repay what it "frittered away."

"We are dismayed and angered," Frank wrote the bank's CEO. "This behavior demonstrates extraordinary levels of irresponsibility and arrogance."

[email protected][/i]
 

Sandhusker

Well-known member
If this bank is in the program that I suspect they are, among a number of other concessions, they're paying 5% on that money from the government.

Also, I'd like to know who the hell Barney Frank thinks he is talking about irresponsibility and arrogance considering his role in the collapse of Fannie and Freddie.
 

Tex

Well-known member
TexasBred said:
Note that this is a PROFITABLE bank which did not solicit the governments investment. Now "Barney" wants them to answer to him.


Another bank with bailout money is partying all the way to the banquet.

Chicago-based Northern Trust was blasted Tuesday for accepting $1.6 billion in taxpayer dollars last November and spending big bucks hosting lavish events with A-list entertainers in Los Angeles last week.

Sheryl Crow, Chicago and Earth, Wind & Fire played at three private, bank-sponsored bashes as clients and employees dined on seared salmon, Angus fillet and black truffle cheese, reported TMZ.com.

Guests flown in for the Northern Trust Open golf tournament enjoyed deluxe accommodations at posh hotels, including the Ritz-Carlton and Beverly Wilshire. Gift bags included blue Tiffany & Co. boxes with white bows.

"Northern Trust is a business that earned operating net income of $641 million last year," the bank said in a statement, defending itself as a "healthy" business.

"Northern Trust did not seek the government's investment, but agreed to the government's goal of gaining the participation of all major banks in the United States," the bank said.

Still, Rep. Barney Frank (D-Mass.), chairman of the House Financial Services Committee, called on the bank to immediately repay what it "frittered away."

"We are dismayed and angered," Frank wrote the bank's CEO. "This behavior demonstrates extraordinary levels of irresponsibility and arrogance."

[email protected][/i]

Accepting 1.6 billion is the problem. If you don't want someone looking over your shoulder criticizing you, then don't take their money and spend it like a drunken sailor.

If this bank was not insolvent or close to it, why did they take the money?


This idea that the govt. can do what it is trying to do of making banks lend money is a little crazy. Make money real cheap even possibly negative to hold on to if it is in t bills and the money already out there will be spent. Insolvent banks have to be taken over by the govt. because of the govt. guarantee of deposits. This does seem to be a looting of the bank by the top officials. Of course it does mean they are contributing to the economy by spending money:)) I would much rather see infrastructure improvements (isn't that what is supposed to be happening anyway with the stimulus bill?)
 

Tex

Well-known member
Sandhusker said:
If this bank is in the program that I suspect they are, among a number of other concessions, they're paying 5% on that money from the government.

Also, I'd like to know who the hell Barney Frank thinks he is talking about irresponsibility and arrogance considering his role in the collapse of Fannie and Freddie.

Two wrongs don't make a right. I hope all who were responsible for this mess are held accountable and that people don't forget their actions that caused this mess just because they seem outraged at someone else who is acting outrageous.
 

Sandhusker

Well-known member
I don't see what Northern Trust has done wrong. They're paying 5% on that money in a deal that the government went to THEM on! Somebody needs to pull Barney Frank's head out of his arse, pull his foot out of his mouth, and get him in a job that he's qualified for; mop-boy at an adult theater.
 

TexasBred

Well-known member
Tex said:
TexasBred said:
Note that this is a PROFITABLE bank which did not solicit the governments investment. Now "Barney" wants them to answer to him.


Another bank with bailout money is partying all the way to the banquet.

Chicago-based Northern Trust was blasted Tuesday for accepting $1.6 billion in taxpayer dollars last November and spending big bucks hosting lavish events with A-list entertainers in Los Angeles last week.

Sheryl Crow, Chicago and Earth, Wind & Fire played at three private, bank-sponsored bashes as clients and employees dined on seared salmon, Angus fillet and black truffle cheese, reported TMZ.com.

Guests flown in for the Northern Trust Open golf tournament enjoyed deluxe accommodations at posh hotels, including the Ritz-Carlton and Beverly Wilshire. Gift bags included blue Tiffany & Co. boxes with white bows.

"Northern Trust is a business that earned operating net income of $641 million last year," the bank said in a statement, defending itself as a "healthy" business.

"Northern Trust did not seek the government's investment, but agreed to the government's goal of gaining the participation of all major banks in the United States," the bank said.

Still, Rep. Barney Frank (D-Mass.), chairman of the House Financial Services Committee, called on the bank to immediately repay what it "frittered away."

"We are dismayed and angered," Frank wrote the bank's CEO. "This behavior demonstrates extraordinary levels of irresponsibility and arrogance."

[email protected][/i]

Accepting 1.6 billion is the problem. If you don't want someone looking over your shoulder criticizing you, then don't take their money and spend it like a drunken sailor.

If this bank was not insolvent or close to it, why did they take the money?


This idea that the govt. can do what it is trying to do of making banks lend money is a little crazy. Make money real cheap even possibly negative to hold on to if it is in t bills and the money already out there will be spent. Insolvent banks have to be taken over by the govt. because of the govt. guarantee of deposits. This does seem to be a looting of the bank by the top officials. Of course it does mean they are contributing to the economy by spending money:)) I would much rather see infrastructure improvements (isn't that what is supposed to be happening anyway with the stimulus bill?)

Tex..that is part of the problem but many were forced to take it whether they wanted or needed it. It was shoved down their throat. Thsi bank neither wanted nor needed anybody's help. They were very profitable. This was the 2nd year they had sponsored the golf tournament. Many banks ran from that money like the plague, just as some governors are doing with the stimulus pkg......

Tennessee's Dem. Governor today announced they probably would not take a lot of the money as well especially that related to extended unemployment benefits.
 

Tex

Well-known member
TexasBred said:
Tex said:
TexasBred said:
Note that this is a PROFITABLE bank which did not solicit the governments investment. Now "Barney" wants them to answer to him.


Another bank with bailout money is partying all the way to the banquet.

Chicago-based Northern Trust was blasted Tuesday for accepting $1.6 billion in taxpayer dollars last November and spending big bucks hosting lavish events with A-list entertainers in Los Angeles last week.

Sheryl Crow, Chicago and Earth, Wind & Fire played at three private, bank-sponsored bashes as clients and employees dined on seared salmon, Angus fillet and black truffle cheese, reported TMZ.com.

Guests flown in for the Northern Trust Open golf tournament enjoyed deluxe accommodations at posh hotels, including the Ritz-Carlton and Beverly Wilshire. Gift bags included blue Tiffany & Co. boxes with white bows.

"Northern Trust is a business that earned operating net income of $641 million last year," the bank said in a statement, defending itself as a "healthy" business.

"Northern Trust did not seek the government's investment, but agreed to the government's goal of gaining the participation of all major banks in the United States," the bank said.

Still, Rep. Barney Frank (D-Mass.), chairman of the House Financial Services Committee, called on the bank to immediately repay what it "frittered away."

"We are dismayed and angered," Frank wrote the bank's CEO. "This behavior demonstrates extraordinary levels of irresponsibility and arrogance."

[email protected][/i]

Accepting 1.6 billion is the problem. If you don't want someone looking over your shoulder criticizing you, then don't take their money and spend it like a drunken sailor.

If this bank was not insolvent or close to it, why did they take the money?


This idea that the govt. can do what it is trying to do of making banks lend money is a little crazy. Make money real cheap even possibly negative to hold on to if it is in t bills and the money already out there will be spent. Insolvent banks have to be taken over by the govt. because of the govt. guarantee of deposits. This does seem to be a looting of the bank by the top officials. Of course it does mean they are contributing to the economy by spending money:)) I would much rather see infrastructure improvements (isn't that what is supposed to be happening anyway with the stimulus bill?)

Tex..that is part of the problem but many were forced to take it whether they wanted or needed it. It was shoved down their throat. Thsi bank neither wanted nor needed anybody's help. They were very profitable. This was the 2nd year they had sponsored the golf tournament. Many banks ran from that money like the plague, just as some governors are doing with the stimulus pkg......

Tennessee's Dem. Governor today announced they probably would not take a lot of the money as well especially that related to extended unemployment benefits.

Tennessee's democratic governor is not really a democrat if you look at his actual policies. That is why Obama will not put him in as Sec. of Health even though he comes from the health industry. He has a dismal record on the state's underinsured program where he basically gutted it. If he denies the unemployment benefits for his citizens without any real cause, he could be in deep, deep political trouble. I haven't heard that news yet nor the news about the backlash on governors who do not take federal money or reasons they give why. It might be interesting.

If the bank took the money or was declared insolvent by a real audit, this action would be involuntary.

If the bank can show they were not insolvent, I think they have a very good case that this was a forced nationalization and something we should all be concerned about. If the TARP program or government can not decipher between solvent and insolvent banks, we are in deep deep trouble.

I just looked at their stock price and this very well might be the case but the feds have access to the books that we just do not have. We have no idea what their accounting is or how accurate it is. It could be funny accounting .
 

TexasBred

Well-known member
Wells Fargo was one of the big banks that told the gov't they neither wanted nor needed any of the TARP money but was forced to take it to make sure the public didn't make runs on those that did need the funds.

A Well Fargo Press Release:

Since credit began contracting 18 months ago, Wells Fargo has made almost half a trillion dollars in new loan commitments and mortgage originations. Last quarter alone, we made $22 billion in loan commitments and $50 billion in mortgage originations. That's more than $70 billion or almost three times the amount of the U.S. Treasury's investment in Wells Fargo -- which has begun to benefit from our performance through the dividend we will pay to the Treasury this quarter.[/b]
 

Tex

Well-known member
TexasBred said:
Wells Fargo was one of the big banks that told the gov't they neither wanted nor needed any of the TARP money but was forced to take it to make sure the public didn't make runs on those that did need the funds.

A Well Fargo Press Release:

Since credit began contracting 18 months ago, Wells Fargo has made almost half a trillion dollars in new loan commitments and mortgage originations. Last quarter alone, we made $22 billion in loan commitments and $50 billion in mortgage originations. That's more than $70 billion or almost three times the amount of the U.S. Treasury's investment in Wells Fargo -- which has begun to benefit from our performance through the dividend we will pay to the Treasury this quarter.[/b]

It will be interesting to find out a little more about that and for that patience is your friend out of necessity. I hope we do find out.
 
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