Mega-Banks Which Received Bailouts Slashed Lending More, Gave Higher Bonuses, and Reduced Costs Less Than Banks Which Didn't Get Bailed Out → Washingtons Blog
Mega-Banks Which Received Bailouts Slashed Lending More, Gave Higher Bonuses, and Reduced Costs Less Than Banks Which Didn't Get Bailed Out - Washingtons Blog

Friday, April 23, 2010

Mega-Banks Which Received Bailouts Slashed Lending More, Gave Higher Bonuses, and Reduced Costs Less Than Banks Which Didn't Get Bailed Out


USA Today points out:

Banks that received federal assistance during the financial crisis reduced lending more aggressively and gave bigger pay raises to employees than institutions that didn't get aid, a USA TODAY/American University review found.

***

• Lending fell. The amount of loans outstanding to businesses and individuals fell 9.1% for the 12 months ending Sept. 30, 2009, at banks that participated in TARP compared with a 6.2% drop at banks that didn't.

• Employee pay rose. Average pay at banks getting aid rose 9.4% in the program's first year. By contrast, non-TARP banks increased salaries 1.8%.

• Cost-cutting limited. Banks in TARP cut costs less than those outside the program. Government-aided banks increased branches by 2.7% while non-TARP banks cut branches by 1.2%.

This helps to confirm what I've been saying for many months: breaking up the too mega-banks will actually increase lending to small businesses and individuals.

Breaking up the giant banks is also required before derivatives can be made transparent. See this, this and this, and to stop the big banks' domination of American politics.

2 comments:

  1. the big banks will NEVER be split up because they ARE the government and they OWN THE FED. do your research. there is nothing federal about the federal reserve. it is a PRIVATE institution to which most of our taxes are paid in the form of interest on the national debt. so not only are you paying banks on your loans and credit cards, they are creating money, lending it to the government to spend, then taking your taxes as interest. why doesn't the government create its own money? the last president to try to end the fed was JFK. and we all know how that ended.

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  2. I really enjoy and learn from this blog. I want to speak to you and you readers. The human mind can become a prison - as it thinks according to a "lost cause". When you are dealing with a criminal with whom you have contracted in good faith - what do you do?? Do you continue to honor the contract and go to them asking for redress of grievances AFTER they have proven their criminality?? Do you continue to "play by the rules"?? That's foolish. You are giving unfair advantage to a criminal to continue robbing you. The prison of the mind must be broken.

    The sovereign peoples and States gave to the Federal Government the power to issue currency - in good faith. When this currency collapses as the result of malfeasance and incompetence by various persons given the responsibility, duty,and authority to print currency - they have reneged on their duties under the Constitution.

    People have this "losing proposition" mindset that they will continue to behave AS IF the other party (DC/Federal Reserve) was acting in good faith. They're not.

    Therefore, when (not if) the currency and economy collapses (probably this summer/fall) - the States must individually assert their ORIGINAL AUTHORITY in conferring power to the Federal Government in this area of failure and default by malfeasance.

    The States have EVERY RIGHT to coin their own currency or means of exchange.

    It's as if people are believing on the basis of HABIT and a PRISON MINDSET that the States have no FREEDOM to coin their own currency on the basis of the Constitution.

    WHEN the Federal Reserve and DC FAIL and are DERELICTION of duty by MALFEASANCE and INCOMPETENCE - that is when the people stop GOING TO DC and the Federal Reserve asking them to amend their ways and doing.

    At that time the States take AUTHORITY (10th AMENDEMENT) and RETRACT the authority they gave TO the Federal Government and Washington DC. It is much like being in receivership of a bankruptcy.

    The STATES must act as "receivership" as the dollar/economy crashes - and TAKE BACK THEIR authority to coin currency and means of exchanges.

    They can even at State level invalidate the amendment to the Constitution which empowers Federal income tax - as soon as the case is proven that DC and the Federal Reserve are in failed fiduciary responsibility for their budget, currency, and fiat money system.

    ReplyDelete

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