Honey's Bob Brinker Beehive Buzz: Moneytalk and Marketimer Message Board - Msg: 25533964

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Strategies & Market Trends : Honey's Bob Brinker Beehive Buzz: Moneytalk and Marketimer

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From: Math Junkie	3/30/2009 2:12:22 PM
	of 2345

It turns out some banks are ready to return the bailout funds. money.cnn.com Excerpt: Goldman Sachs (GS, Fortune 500), Bank of New York/Mellon (BK, Fortune 500), Wells Fargo (WFC, Fortune 500), JP Morgan Chase (JPM, Fortune 500) and Bank of America (BAC, Fortune 500) - all 'mega-banks' that the government forced to take bailout money - say they want to return taxpayer funds "as soon as practical." But, they're well aware no one will be permitted to return funds before completion of regulatory "stress-tests" of the major banks to determine how they would withstand a severe recession. "We want to return the TARP money as soon as possible. We feel more bullish about economic prospects broadly, but we recognize we can't repay the money without the approval of the regulators," said Goldman Sachs spokesman Lucas Van Praag. The "stress-tests" are supposed to be finished next month. But it's likely the Treasury will not permit bankers to return taxpayer money for many more months. The main purpose of TARP is to stabilize the banking system, to prevent a run on any bank that appears to be in trouble. It has done that much. If Treasury starts taking money back from healthy banks while the economy is still in trouble the weaker banks may appear to be even weaker and the confidence that TARP brought may suddenly disappear. "The Government has to maintain confidence throughout the banking sector. These banks are all interconnected," said Miller. Bankers may not like the Government interfering in their business. But, right now, those who have taken TARP funds have little choice.

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