Friday, March 6, 2009

Two banks to return US bailout money

Banks are lining up to return bailout money to the government. Not too long after the first round of bailout cash was distributed, there were a couple of banks bold enough to come out and give interviews in which they reveal that they did not want the money because they were not in financial trouble and did not need the money. However they stated that the money was not so subtly forced on them and they were not sure how to give it back.

Maybe they were not trying hard enough to figure it out. It seems that after learning about the rules and strings that come attached to the funds, several banks are making it their business to give the money back, following any process they can. Banks do not want to be attached to the stigma or the rules associated with “bail out” money (they are almost like dirty words). So, the government will get billions back. In the meantime that money is sitting somewhere in money cyber land collecting interest. Are they going to give that back too?

I can’t blame the banks for not wanting to get involved with additional rules and regulations especially when they ran their business the right way. So now what? What happens to all that money that is coming back and how can that cash be leveraged to boost the economy?

Two banks to return US bailout money - Rep Frank
Reuters - ‎16 hours ago‎
Frank also said US Bancorp (USB.N), the eight-largest US bank, will return $6 billion. The bank received $6.6 billion from the fund. ...
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