We Can’t do this and survive…..why can they?

When you go to a bank, and get a loan, how much does the bank know about where the money is going to be used at? Usually, when we get a loan, the bank has to know everything about what that money is going to be used for and why. But, here is what is happening with our government.

With the bailout money, you would think that the banks who got the money in the bailout, would know where the money was going and why. And if that is what you think, then you are sadly mistaken. They do not know.

From a story that I got from the AP {Associated Press} earlier in the day on Monday. And what I found kind of stunned me. Here is what the story said:

Where’d the bailout money go? Shhh, it’s a secret

By Matt Apuzzo, Associated Press Writer

WASHINGTON–It’s something any bank would demand to know before handing out a loan: Where’s the money going? But after receiving billions in aid from U.S. taxpayers, the nation’s largest banks say they can’t track exactly how they’re spending the money or they simply refuse to discuss it.

“We’ve lent some of it. We’ve not lent some of it. We’ve not given any accounting of, ‘Here’s how we’re doing it,'” said Thomas Kelly, a spokesman for JPMorgan Chase, which received at least 1 billion in government money and asked four questions: How much has been spent? What was it spent on? How much is being held in savings, and what’s the plan for the rest?

None of the banks provided specific answers.

“We’re not providing dollar-in, dollar-out tracking,” said Barry Kolling, a spoksman for Atlanta, Ga based SunTrust Banks Inc., which got $3.5 billion in taxpayer dollars.

Some banks said they simply didn’t know where the money was going.

“We manage our capital in its aggregate,” said Regions Financial Corp. spokesman tim Deighton, who said the Birmingham, Alabama based company is not tracking how it is spending the $3.5 billion it received as part of the financial bailout.

The answers highlight the secrecy surrounding the Troubled Assets Relief Program, which earmarked $700 billion — about the size of the Netherlands’ economy — to help rescue the financial industry. The Treasury Department has been using the money to buy stock in U.S. banks, hoping that the sudden inflow of cash will get banks to start lending money.

there has been no accounting of how banks spend that money. Lawmakers summoned bank executives to Capitol Hill last month and implored them to lend the money — not to hord it or spend it on corporate bunuses, junkets or to buy other banks. But there is no process in place to make sure that’s happening and there are no consequences for banks who don’t comply.

Now is this any way to run a business? And giving out bailout loans to companies is a business. If the banks did their work in loaning money out did it this way, they would be bankrupt so quickly that their collective heads would spin. But there is more folks. Read on:

“It is entirely appropriate for the American people to know how their taxpayer dollars are being spent in private industry,” said Elizabeth Warren, the top congressional watchdog overseeing the financial bailout.

But, at least for now, there’s no way for taxpayers to find that out.

Pressured by the Bush administration to approve the money quickly, Congress attached nearly no strings on the $700 billion in October. And the Treasury Department, which doles out the money, never asked banks how it would be spent.

Are we kidding here? The banks should know better in the first place. They are in the business of loaning money. They know what needs to be done to get a loan, and what they expect of the people they loan money too. Shouldn’t they because of this, know that is what they needed to do? I shudder to think just where this country is going when the financial portion of our country can’t do the right things when getting money for a loan, or a bailout. The people of the United States are not stupid, though it seems the government thinks we are. And still, there is more people. The article goes on………

“Those are legitimate questions that should have been asked on Day One,” said Rep. Scott Garrett, R-N.J., a House Financial Services Committee member who opposed the bailout as it was rushed through Congress. “Where is the money going to go? How is it going to be spent? When are we going to get a record on it?”

Nearly every bank AP questioned — including Citibank and Bank of America, two of the largest recipients of bailout money — responded with generic public relations statements explaining that the money was being used to strengthen balance sheets and continue making loans to ease the credit crisis.

A few banks described company-specific programs, such as JPMorgan Chase’s plan to lend $5 billion to nonprofit and health care companies next year. Richard Becker, senior vice president of Wisconsin-based Marshall & Ilsley Corp., said the $1.75 billion in bailout money allowed the bank to temporarily stop foreclosing on homes.

But no bank provided even the most basic accounting for the federal money.

“We’re choosing not to disclose that,” said Kevin Heine, spokesman for Bank of New York Mellon, which received about $3 billion.

They are choosing not to disclose that????? Oh come on now. How freaking stupid do they think that we are? If we ever took a loan from these same banks and tried to say the same things to them when asked about how we are going to spend the money, we would lose the money and probably end up in jail. Where is the correctness in this? I sure as hell do not see it. Yet my friends, that is not all. The article goes on for more of this stupidity……

Others said the money couldn’t be tracked……….Couldn’t be tracked????!!!?!?!?! Bob Denham, a spokesman for North Carolina based BB&T Corp., said the bailout money “doesn’t have its own bucket.” But he said taxpayer money wasn’t used in the bank’s recent purchase of a Florida Insurance company. Asked how he could be sure, since the money wasn’t being tracked, Denham said the bank would have made that deal regardless.

Others, such as Morgan Stanley spokeswoman Carissa Ramirez, offered to discuss the matter with reporters on condition of anonymity. Where AP refused, Ramirez sent an e-mail saying: “We are going to decline to comment on your story.”

Most banks wouldn’t say why they were keeping the details secret.

“We’re not sharing any other details. We’re just not at this time,” said Wendy Walker, a spokeswoman for Dallas-based Comerica Inc., which received $2.25 billion from the government.

I just will not say anything about this one…..sheesh!!!!

Heine, the New York Mellon Corp. spokesman who said he wouldn’t share spending specifics, added: “I just would prefer if you wouldn’t say that we’re not going to discuss those details.”

The banks which came closest to answering the questions were those, such as U.S. Bancorp and Huntington Bancshares Inc., that only recently received the money and have yet to spend it. But neither provided anything more than a generic summary of how the money would be spent.

Lawmakers say they want to tighten restrictions on the remaining, yet-to-be-released $250 billion block of bailout money before more cash is handed out. Treasury Secretary Henry Paulson said the department is trying to step up its monitoring of bank spending.

There is more people….but I think you get the idea. I think right now, the government should step back in, take the money back until the banks will disclose how much has been spent? What was it spent on? How much is being held in savings, and what’s the plan for the rest? If they do not want to do what they know is right here….then they should lose the money, and be made to pay back the part that is gone. This is ridiculous. We wouldn’t be allowed to do this, why should they? The story I got from the AP wire on the morning of 12/22/08.

God Bless America
God Bless our Troops always
God Bless my readers, my listeners on BTR, and my viewers on youtube…..


About Robert P. Garding

I am a Reagan Conservative, who is very alarmed at the Liberals who have just lost their majority over our government, but continue to act like it never happened. They have to be stopped. NOW or even sooner.
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4 Responses to We Can’t do this and survive…..why can they?

  1. This is what happens when legislation is rushed through the Congress. Any guesses on how the Detroit bailout will play out? Same song, different verse.

  2. Seane-Anna says:

    I agree totally with Chris above, but I also wonder if this failure at oversight is deliberate. As rushed as this legislation was there is no reason why our fearless leaders could not have written some acountability into it, unless they just didn’t want to. And why they didn’t want to is what scares the hell out of me.

  3. Angel says:

    Happiest holiday and big NYC hugs my friend!:)

  4. Tony W says:

    This has nothing to do with the process being rushed. This was a robbery and it was an inside job.

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