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Opinions/Editorials Title: TARP 'Most Successful U.S. Program Ever' The Troubled Asset Relief Program wasn't really a bank bailout after all, but instead was the "most successful government financial program ever," banking analyst Dick Bove said. In a research note, Bove noted that the controversial TARP saved the banking industry as well as the broader economy while generating a hefty return for taxpayers. Former President George W. Bush signed the $700 billion program into law on Oct. 3, 2008 as banks suffered a liquidity crisis brought on by the collapse of the subprime mortgage market. TARP recapitalized banks across the board -- even many that didn't need the extra money. Bove praised the program for restoring faith in the system even though it has received a largely negative public perception. "In short this may have been the most successful United States program ever," he wrote. "Moreover, it was bipartisan in the sense that both the Republican Administration that created it and the Democratic Administration that fostered it were unified in their beliefs as to what should have been done -- and they did it." More than half the TARP banks have repaid the money and the Treasury Department has netted a $28 billion profit so far. The Federal Deposit Insurance Corp also has brought in $12 billion on its guarantee program while the Federal Reserve "may have made" an additional $20 billion, Bove said. Yet perception of the program remains largely negative, a fact Bove bemoans and blames largely on the media and politicians. "They continue to excoriate the program as having been harmful to 'main street' America," he wrote. "The program was never understood by ... either group and they acted on their misperceptions by selling the American people an enormous set of falsehoods concerning what was being done and the effect of these programs." Bove's analysis, though, does not address what is perhaps the biggest criticism of TARP -- the concept of "moral hazard," or whether the government's assistance in the crisis sent a message that recklessness by banks will always get a governmental backstop. He also states that TARP "reversed a decline in the economy which would have resulted in even more bankruptcies, lost jobs and wealth destruction." Yet 2010 has seen the greatest number of bank failures (143) than any year since the financial crisis began, and unemployment was at 6.6 percent the month TARP was introduced and has soared to 9.6 percent since, with a top rate of 10.1 percent in between. But Bove said the damage to the economy could have been even worse. "The sale of these misperceptions has impacted Congressional legislation; created stress on the economy that was not needed; and lowered prices in the financial sector," he wrote. "Maybe the time has come for the sellers of the falsehoods to redress what they have done and explain what the TARP program has done for Americans." Post Comment Private Reply Ignore Thread Top • Page Up • Full Thread • Page Down • Bottom/Latest Bove's analysis, though, does not address what is perhaps the biggest criticism of TARP -- the concept of "moral hazard," or whether the government's assistance in the crisis sent a message that recklessness by banks will always get a governmental backstop. Thats part of it...but a small part. The real problem? Average Americans understand if they are STUPID the Federal Government won't bail THEM OUT. Instead, it will PROSECUTE THEM. I'm not surprised a banker says it was 'the most sucessful in history'. Its been my experience (personal) they are devoid of any real understanding of what its like if you ARE NOT A BANKER. Obama's first all-by-his-lonesome budget, btw, calls for a $1.17 trillion deficit. #2. To: Brian S (#0) The Troubled Asset Relief Program wasn't really a bank bailout after all, but instead was the "most successful government financial program ever," banking analyst Dick Bove said. More bullshit. It was government-sponsored THEFT, pure and simple. You really should find better sources of propaganda. At least then a few of the sheeple might buy this crap. Getting tired of the bozoed calcon following me around on the 'net, wanting to discuss "tossing salad." Sorry, you sick rump-ranger. NOT interested. #3. To: Brian S (#0) What are you saying? Bush was a genius?
#4. To: Brian S (#0) (Edited) # # Colonial Bancgroup hits hard times - St. Petersburg Times Apr 1, 2009 ... Colonial Bancgroup, an Alabama bank prominent in the Tampa Bay area, ... have qualified for $550 million in federal bailout or TARP funds. ... www.tampabay.com/news/.../banking/article988996.ece - Cached - Similar # UPDATE 1-Colonial BancGroup shares soar on TARP funding | Reuters Dec 2, 2008 ... "The $550 million in new capital will enhance our capital cushion and will allow Colonial Bank to meet our customers' financing needs with ... www.reuters.com/article/idUSBNG42208920081202 - Cached Colonial Bank Raided by Feds, TARP Cops | Jr Deputy Accountant Feds raid Colonial Bank office in Florida (via Reuters). Federal agents working with the U.S. Treasury's Troubled Asset Relief Program (TARP) executed ... www.jrdeputyaccountant.co...ed-by-feds-tarp-cops.html - Cached - Similar Imagine the Two Most Powerful Men in your state, connected tho the most powerful University in the state. When this bank got raided for 'not qualifying'(still working on that;} for TARP, you could, if you listened closely, hear a DYNASTY in ALABAMA falling. LMFAO
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