Read the Beforeitsnews.com story here. Advertise at Before It's News here.
Profile image
Story Views
Now:
Last hour:
Last 24 hours:
Total:

Bankster Says Only Gun to Head Will Oblige TARP Repayment

% of readers think this story is Fact. Add your two cents.


Banks that received billions during the Federal Reserve created implosion of the subprime real estate market say they are not obliged to make good on repaying the money.

From The Wall Street Journal:

Maryland Financial Bank, one of six banks included in the government’s auction this week of stakes it received as part of its crisis-era bailout program, enjoys an unusual luxury: It doesn’t have to make good on the money it still owes taxpayers.

The Journal reports when the TARP program “was hastily assembled in the frantic days of 2008, the government was interested in making sure the capital was widely available to banks of all sizes” and banks that issued noncumulative shares as repayment figured out how to delay and ultimately stiff tax payers.

The Towson, Md., bank, which received $1.7 million in the Troubled Asset Relief Program in 2009, is a beneficiary of a quirk that placed stricter rules on some recipients of financial aid than on others.

Specifically, some of the banks that received TARP money aren’t obligated to make good on dividend payments they have missed. That leaves the banks with a dilemma of either fulfilling their obligations to taxpayers at the expense of their own balance sheets, or keeping the money for themselves. Banks can protect themselves and their shareholders by skipping the payments. Shelling out optional payments to the U.S. government could even be interpreted as a breach of duty to shareholders.

Maryland Financial’s CEO, Robert Chafey, said only physical violence will force him to make good.

“We don’t have a gun to our head to pay this dividend, so why would we pay?” Mr. Chafey said in a February interview, according to the Journal.

Reprinted with permission


Source: http://rinf.com/alt-news/money/bankster-says-gun-head-will-oblige-tarp-repayment/


Before It’s News® is a community of individuals who report on what’s going on around them, from all around the world.

Anyone can join.
Anyone can contribute.
Anyone can become informed about their world.

"United We Stand" Click Here To Create Your Personal Citizen Journalist Account Today, Be Sure To Invite Your Friends.

Please Help Support BeforeitsNews by trying our Natural Health Products below!


Order by Phone at 888-809-8385 or online at https://mitocopper.com M - F 9am to 5pm EST

Order by Phone at 866-388-7003 or online at https://www.herbanomic.com M - F 9am to 5pm EST

Order by Phone at 866-388-7003 or online at https://www.herbanomics.com M - F 9am to 5pm EST


Humic & Fulvic Trace Minerals Complex - Nature's most important supplement! Vivid Dreams again!

HNEX HydroNano EXtracellular Water - Improve immune system health and reduce inflammation.

Ultimate Clinical Potency Curcumin - Natural pain relief, reduce inflammation and so much more.

MitoCopper - Bioavailable Copper destroys pathogens and gives you more energy. (See Blood Video)

Oxy Powder - Natural Colon Cleanser!  Cleans out toxic buildup with oxygen!

Nascent Iodine - Promotes detoxification, mental focus and thyroid health.

Smart Meter Cover -  Reduces Smart Meter radiation by 96%! (See Video).

Report abuse

    Comments

    Your Comments
    Question   Razz  Sad   Evil  Exclaim  Smile  Redface  Biggrin  Surprised  Eek   Confused   Cool  LOL   Mad   Twisted  Rolleyes   Wink  Idea  Arrow  Neutral  Cry   Mr. Green

    MOST RECENT
    Load more ...

    SignUp

    Login

    Newsletter

    Email this story
    Email this story

    If you really want to ban this commenter, please write down the reason:

    If you really want to disable all recommended stories, click on OK button. After that, you will be redirect to your options page.