muck Posted December 8, 2009 Share Posted December 8, 2009 FYI, I had a quick conversation with a local banker. He told me that there are several smaller banks in the area (and he mused that it was probably the same nationally) that had taken TARP funds but had missed every single one of the required payments to be made under the terms of the investment. I've heard lots of things about banks being in trouble, compensation for bankers, etc ... but, I've not heard any stories about whether or not banks that are keeping the TARP money for the time being are making the payments they were supposed to have been making. But, then again, I've not looked very hard for stories on this topic either. Quote Link to comment Share on other sites More sharing options...
Ursa Majoris Posted December 8, 2009 Share Posted December 8, 2009 FYI, I had a quick conversation with a local banker. He told me that there are several smaller banks in the area (and he mused that it was probably the same nationally) that had taken TARP funds but had missed every single one of the required payments to be made under the terms of the investment. I've heard lots of things about banks being in trouble, compensation for bankers, etc ... but, I've not heard any stories about whether or not banks that are keeping the TARP money for the time being are making the payments they were supposed to have been making. But, then again, I've not looked very hard for stories on this topic either. Um....this was front page news today. Banks ARE repaying TARP money and they're doing it faster than expected. Losses will be less than half those expected. Quote Link to comment Share on other sites More sharing options...
muck Posted December 8, 2009 Author Share Posted December 8, 2009 Those are generally from bigger banks. I'm talking more about community banks that took a few million ... not the large local and regional banks that took several hundred million to several billion. The banker I spoke to specifically mentioned a local bank that (iirc) took about $16 million in TARP funds; the banker said that they have not made any of the three "required" payments to the government ... and that there were quite a few others in the same situation. Why is this a problem? Many of the smaller banks don't have the diverse revenue sources (especially sources of fee income) that the larger banks have (asset management is a biggie) ... and these non-credit-related revenues will help the larger banks out a bunch. Quote Link to comment Share on other sites More sharing options...
dmarc117 Posted December 8, 2009 Share Posted December 8, 2009 Um....this was front page news today. Banks ARE repaying TARP money and they're doing it faster than expected. Losses will be less than half those expected. no competition. the big banks are crushing the little guys. fees going up. Quote Link to comment Share on other sites More sharing options...
The Irish Doggy Posted December 8, 2009 Share Posted December 8, 2009 (edited) The other incentive for larger banks is that they cannot recruit talented employees. With the government limiting corporate compensation packages, Bank of America and the like are not attractive employers at the moment. Once they repay TARP money, they can go back to business as they want it. I imagine smaller banks don't feel this pressure so much as their execs probably earn less and fly under the radar of the public outrage. Edited December 8, 2009 by The Irish Doggy Quote Link to comment Share on other sites More sharing options...
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