TARP Extended; Banks Try to Leave the Program

Friday, December 11, 2009

Treasury Secretary Timothy Geithner defended his extension of TARP on Thursday, saying it will help fight foreclosures and increase lending for small businesses.  But many banks have already paid back the bulk of their TARP money: Bank of America returned the entirety of its bailout funds on Wednesday, and Citigroup is playing catch-up, trying hard to get out from under government ownership by repaying $45 billion of TARP money.  We speak with Andrew Ross Sorkin, chief acquisitions and mergers correspondent for The New York Times and author of "Too Big to Fail: The Inside Story of How Wall Street and Washington Fought to Save the Financial System - and Themselves." We also hear from Richard Bove, an analyst with Rochedale Securities in Lutz, Florida, on whether the paybacks mean the economic crisis is over, or just that banks want out of the program's regulation.

Guests:

Richard Bove and Andrew Ross Sorkin

Hosted by:

Todd Zwillich

Comments [1]

dan

Finance is the grease that make the real economy work. Bankers do not create anything, they rent money, they steal money from their customers. We create the value in the economy bankers do not. Creative banking products are the ones where the bankers get bigger profits from their customers and the rest of us get bigger risks. Until we decide that Big banks that earn most of there profit from trading are playing with our money, speculating, driving up the cost of commodities that everyone needs and buys for the banks profit we will continue the folly of the To big to fail. These big banks depend on outsized returns trading, speculating and opaque markets that they control to survive. It is the small community bank which funds local business and people. Don't pay bankers hugh salaries and bonuses to survive. They grease the local economy. That is why it is so upsetting to hear a consultant being given a megaphone to support hugh banks.

Dec. 11 2009 10:21 AM

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