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Bankaholic Seeks TARP Funds, Buys Bank

Just kidding.

Some suspicious developments though…

Official 6 Page Long TARP Application
The ENTIRE 6 PAGE TARP APPLICATION is out. LOL, I’m stunned how short it is—I had to fill out more info just to get a loan on my car!

TARP Loophole
Out on the markets, it looks like the corporate weasels are out in full force and trying to grab a piece of the $700 bln TARP funds. Apparently, all you gotta do is buy a bank or reclassify your corporation to be a bank.

Last week, Hartford Financial Services, a $4bln insurance company, acquired a tiny $10mm savings & loan bank in Florida, and now they are applying to get their share of the TARP money. The details are still unclear, but it seems that by spending $10mm to buy a bank, Hartford is now eligible for billions in taxpayer financed liquidity from the government?

Don’t forget about American Express, which changed it’s corporate structure to a “bank holding company” so that they too could participate in the TARP program.

And now, Genworth Financial is following suit and acquiring a tiny bank in Minnesota so that they too can claim to be a “bank” and be eligible for TARP $$.

Fleecing of America
As far was I can tell, the US taxpayers have been ROBBED… Your tax dollars have found their way to the pocketbooks of the likes of JPMorgan, Hartford Financial—and who knows, maybe even GM (which also happens to operate GMAC Bank!) & Ford? This $700bln in TARP money, which was originally meant to buy “troubled assets”, is now up for grabs by corporations that pretend to be banks.

Everyone’s lining up at Secretary Paulson’s doorstep, looking for their piece of the pie…

Intentional Consequences?
Anyways this is fairly complicated topic, so what are your comments on this? Did proponents of this anticipate this financial circus? or was this their end game plan all along?

And before I forget, where’s the oversight?!

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Comments (15)
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15 Existing Comments
  1. Trevor said:
    on November 17th at 03:55 pm

    Good post. This gives me something to research.

  2. Zoe said:
    on November 17th at 06:01 pm

    This post is ripe for conspiracy speculation on a par with the recent “chip implant” thread. Fact is both the Conspiracy-NUTs AND the ANTI-ConspiracyNUTS. are half right. Through out history most seminal events, both good and bad, have resulted from a confluence of interests. When many agendas benefit from an outcome the result is a defacto conspiracy. Follow the money!

  3. Gordon said:
    on November 17th at 06:02 pm

    More than food for thought…something to get P….ed about!
    More people should start asking these questions, or does silance mean that they’re not currently aware of it and will not be able to recall all this at a later date like in the movies. We, the taxpayer try that route and we’re in contempt of court…while the banks/auto makers/investment houses are just in contempt.
    As per all the requirements put on the taxpayer, there should be a “owned/controlled prior to date” clause to the Bailout. Also as when the taxpayer gets “Desaster Relief” these institutions should have to pay the money back, may be with interest.

    One last thought, are we going to wait till 600 of the 700 has been handed out to establish oversight, like with the S&L dibacal?

  4. BankVibe said:
    on November 17th at 07:13 pm

    As of November 12, 2008, $290 billion of the first $350 billion allotment funding TARP has been allocated: $250 billion for bank equity infusions, and $40 billion for an equity infusion into insurer AIG.

  5. Casey said:
    on November 17th at 10:32 pm

    Lots of money seem to cloud people’s brains that have the big education…or maybe they just paid for that piece of paper?

  6. David Dyang said:
    on November 17th at 10:55 pm

    My professor actually published an article on the subject. Bailout is bad and he tried to measure how to punish financial institutions that are not following a respectable policy.
    Find it here at : http://blog.sebastiengay.com/?p=45

  7. Larry said:
    on November 18th at 04:55 am

    It’s the fleecing of capitalism by Bush/Cheney/Reagan boys.

  8. BloggingBanks said:
    on November 18th at 03:53 pm

    Based off what I am reading in the document attached the “bailout” is far from free lunch as it limits exectuvies compensation, capital structure is changes and earnings distributions are under a microscope..

  9. Travelinator said:
    on November 19th at 04:28 pm

    I heard even some plumbing contractors were trying to tap the free tax money keg but were rejected. I guess there is a little over sight at least.

  10. Shea said:
    on November 20th at 09:22 pm

    Good article but I think everyone here is missing a crucial point. This is ALL against our Constitution. Over the past 75 years, the government has had their fat hand in the cookie jar. They’ve helped to take down the banking industry, the auto industry, and ultimately our economy. Are politicians experts on our economy? Who’s this Emperor Paulson guy anyway? He has no clue how to spend my money…but has a plan? The government can’t balance their own check book…but they’ll take us out of this financial crisis. They’ve messed it up…and will continue to mess it up further.

    Costa Rica anyone?

    Check out my site-
    http://www.shea-freedomfighter.blogspot.com

  11. Lee said:
    on November 25th at 01:54 am

    My comment: I think I should buy a bank.

  12. ameera said:
    on November 26th at 04:39 am

    It was obviously the goal all along. We’re talking about intelligent people here.

  13. Max said:
    on November 26th at 07:04 am

    FDIC insured Bonds. This should be interesting.

  14. USBailOut.com said:
    on November 26th at 07:06 am

    More news at USBailOut.com

  15. Lee said:
    on January 22nd at 02:12 am

    Good article but I think everyone here is missing a crucial point. This is ALL against our Constitution. Over the past 75 years, the government has had their fat hand in the cookie jar. They’ve helped to take down the banking industry, the auto industry, and ultimately our economy. Are politicians experts on our economy? Who’s this Emperor Paulson guy anyway? He has no clue how to spend my money…but has a plan? The government can’t balance their own check book…but they’ll take us out of this financial crisis. They’ve messed it up…and will continue to mess it up further.