On Obama’s desk is a financial reform bill intended for Wall Street. We don’t want one more recession and want to stop helping banks. However, that brings up the issue of which institutions really were bailed out, or benefited the most. The public should know who was bailed out since they funded.
Wall street got the bulk of the bailout
Within the Troubled Asset Relief Program (TARP), CNN Money reports there were 707 banks participating. From those 707 banking institutions, 690 of them had to split $ 40 billion between them. The average for those 690 banks is $ 57,971, 014.49 apiece. 13 of the 17 largest financial institutions which were given many of the bailout already paid back the government. They are also starting to return to profitability, as it was announced today within the Market Watch that JP Morgan Chase had just posted $ 4.8 billion in second quarter income.
Struggling a lot is main street
The very same CNN article also highlighted that only $ 15 billion of the $ 40 billion lent to small and medium banks participating in the Capital Purchase Program, or CPP. Large banks were saved by the bailout while they tried to get around to all the main street banks also. Debts for many who received CPP loans have only been paid by 10 percent so far. Out of the small banks that still owe money from CPP loans, 15 percent have missed at least one payment.
Help sheep by feeding the wolves only
Wall Street is nevertheless right within the middle of the 2008 financial crash. It may become normal to have strict standards considering the $ 550 million fine Goldman Sachs just got from the SEC and the financial reform bill that just passed. If main street banks go under, what will happen? Will our list of institutions be limited and costs us $ 700 billion to view our money?
More details available at these sites
CNN Money on TARP
money.cnn.com/2010/07/14/news/economy/Main_Street_banks_TARP/index.htm
CNN on Goldman
money.cnn.com/2010/07/15/news/companies/SEC_goldman/index.htm
Market Watch
marketwatch.com/story/jpmorgan-chase-reports-second-quarter-2010-net-income-of-48-billion-or-109-per-share-on-revenue1-of-256-billion-2010-07-15?reflink=MW_news_stmp
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