Bank tax

[BeachSiO2]

Right now I am seeing small institutions who still owe money exempt.
Fannie and Freddie are exempt
AIG will not be exempt
Auto industry will be exempt


And as a summary from The Hill

The fee would apply to roughly 50 financial firms each with at least $50 billion in assets, an administration official said on Wednesday. Of those, 35 would be U.S. firms, 15 would be subsidiaries of foreign-owned firms and 27 would be U.S. banks, the official said.

The 10 largest firms would likely account for 60 percent of the total fee revenue over the decade, the official said.

 

[30ashopper]

Much of the TARP funds have been repaid with interest? Please tell me where I can see those numbers. I know some has been paid back but "much" seems a bit...much. How much? 80% 50%?

A lot of it will not be "paid back" because it was given away by Congress. It's impossible to know exactly which banks and businesses received funds because the current Treasury refuses to release a complete list. Of the known large banks that received funds, eleven out of fifteen have repaid them. Remaining large banks and businesses with outstanding tarp debt (according to wikipedia) are GMAC, Chrysler, GM, AIG, Regions, and Discover.

The detail on how much money the federal government threw around over the last two years can be found on the main wikipedia article. The numbers are staggering.

Troubled Asset Relief Program - Wikipedia, the free encyclopedia

 

[30ashopper]

Foreclosure relief funding also came out of TARP apparently. That's money we'll never see.

 

[scooterbug44]

I know that my reasoning is far too logical and simplistic for the government, but IMO if we have a clear record of who received money, we should be able to collect said money.

And I could see not releasing names at the initial time, but I think it is NOW time to do so.

 

[Lynnie]

There is a concern of these banks being hit the 'tax' passing it on to the consumer, but the argument is that they will have to compete with smaller banks who did not accept TARP funds, making them more attractive and maintaining a healthy competition.

If the gov't can do this kind of bail out, then impose a tax on the corporation receiving the bailing (knowing the potential game), the gov't should pass a bill that limits any increases in fees from these institutions to their customers.....for a period of years.....maybe five, I am thinking. However, this goes against the grain of free enterprise, less government and pure capitalism.

Go with a smaller bank?

 

[futurebeachbum]

Why can't we just eventually get our money back from GM & Chrysler?

Because they probably aren't going to be around to pay it back.

I do think the banks caused the crisis - and haven't learned a damn thing or changed their ways BTW - but shouldn't have to pay for others.

On top of all of the other problems and mistakes, the government allowed the banks to invest the TARP funds in Wall Street, rather than requiring them to be used to make reasonable credit available for small businesses and consumers. Until small businesses start hiring and consumers resume spending at reasonable levels, the economy isn't going to improve much.

 

[30ashopper]

Because they probably aren't going to be around to pay it back.

I read something interesting on this - apparently GM left a chunk of their TARP debt on the books of the failed part of the business. The new company that emerged from bankruptcy court isn't liable for it. This was apparently approved by the Treasury and Obama's 'auto czar' or whatever. I think that's an important lesson learned because, the original push (back when reps had more sway in Congress) was for GM to file for bankruptcy, but the dems came in and decided to bail them out claiming bankruptcy would ruin the company. In the end, they filed bankruptcy anyway, and walked off will billions in taxpayer funds. At least the banks paid their loans back!

 

[Bob]

washingtonpost.com Obama to ask for $33 billion for Afghan troop buildup


Reuters
Wednesday, January 13, 2010; 10:03 AM

WASHINGTON (Reuters) - U.S. President Barack Obama plans to ask Congress for $33 billion in emergency war funding for a major U.S. troop buildup in Afghanistan this year, defense officials said on Wednesday.

The money, mainly for the deployment of 30,000 additional troops to Afghanistan and other war costs in the current 2010 fiscal year, would come on top of Obama's expected request to increase the Pentagon's overall budget in fiscal 2011 to a record $708 billion, the officials said on condition of anonymity.
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Fiscal 2010 Defense Department funding, including war costs in Afghanistan and Iraq as well as military construction, already comes to $660 billion.

If approved by Congress, the $33 billion emergency funding request, in line with estimates released last month by the Pentagon, would push that 2010 total to $693 billion.

you are whining about saving american industry while the fiscal forest fire rages in war incorporated. who will pay back the cost of multi-decadal wars?

 

[30ashopper]

washingtonpost.com Obama to ask for $33 billion for Afghan troop buildup


Reuters
Wednesday, January 13, 2010; 10:03 AM

WASHINGTON (Reuters) - U.S. President Barack Obama plans to ask Congress for $33 billion in emergency war funding for a major U.S. troop buildup in Afghanistan this year, defense officials said on Wednesday.

The money, mainly for the deployment of 30,000 additional troops to Afghanistan and other war costs in the current 2010 fiscal year, would come on top of Obama's expected request to increase the Pentagon's overall budget in fiscal 2011 to a record $708 billion, the officials said on condition of anonymity.
ad_icon

Fiscal 2010 Defense Department funding, including war costs in Afghanistan and Iraq as well as military construction, already comes to $660 billion.

If approved by Congress, the $33 billion emergency funding request, in line with estimates released last month by the Pentagon, would push that 2010 total to $693 billion.

you are whining about saving american industry while the fiscal forest fire rages in war incorporated. who will pay back the cost of multi-decadal wars?

No we were discussing a tax on banks.. but thanks for the war update.

I would think it's safe to completely pull out of Iraq now, not sure what the status is at this point. As far as Afghanistan goes, we can walk away but if we do we risk long term repercussions of giving up on helping to stabilize that region for the second time. I'm not sure which is the best approach at this point.

 

[futurebeachbum]

I read something interesting on this - apparently GM left a chunk of their TARP debt on the books of the failed part of the business. The new company that emerged from bankruptcy court isn't liable for it. This was apparently approved by the Treasury and Obama's 'auto czar' or whatever.

Apparently both Chrysler and GM were able to do that. Here are a couple of articles.

First It's (Mostly) Official: $4 Billion of Chrysler TARP Loans a Writeoff

The Chapter 11 bankruptcy reorganization plan filed Tuesday by the company comprised of the remnants of the former Chrysler, Old Carco LLC, effectively leaves the U.S. taxpayer on the hook for about $4 billion loaned to the company through the U.S. Department of Treasury's infamous Troubled Assets Relief Program, Reuters reported.

The plan accounts for no payback of the $4 billion "bridge" loan to Chrysler made through TARP in January, prior to its summer bankruptcy, although secured creditors accounting for a mere $20.6 million of the billions in debt the company left behind will be paid in full.

There are similar articles on GM. GM Will Pay Back Gov't Loan...With Gov't Money? (this one will really turn your stomach.)

GM will begin paying back the TARP money in December, the company announced this morning. It?s a statement in need of a little context.

Basically, GM will be using a portion of its $50 billion in TARP bailout money it received to in turn repay another portion of the TARP loans.

The reason GM can do this is because when GM emerged from bankruptcy, it struck a deal with the Treasury Department to carve up its obligation to the government in four different ways.

I still don't see either company surviving long enough to make paying back loans much of a possibility. I certainly wouldn't buy a product from either one.