Nouriel Roubini says that allowing banks to repay TARP funds creates competitive disadvantages.

[Better Believe It]

Economist Nouriel Roubini says that allowing banks to repay TARP funds creates competitive disadvantages.
June 15, 2009

See the video interview at:

http://money.cnn.com/video/news/2009/06/15/roubini.tarp.payback.cnnmoney/

The interview is preceded by a 30 second commercial.

[PBS Poll-435]

1. Banks that never wanted/needed TCPP $$$ should not be forced to continue to pay the government

Preferred dividends while slashing/eliminating dividends to the common stockholders.

And forcing banks to keep the money in order to create the illusion that every bank is equally solvent & healthy is asinine.



We should be excited that the taxpayers are getting their money back. With interest.

[Better Believe It]

2. If they can pay it back should we cut off all other government bailout money to them?

They would scream bloody murder if the Obama administration proposed cutting off their trillions in government funded welfare.

But why would they need or even want other government bailout money if they are solvent?

That should be the rule.

If a bank pays back the TARP money, all other government bailout programs will be immediately terminated for that bank and they'll not be eligible for TARP or other government bailout programs in the future.

That sounds reasonable. Don't you agree?

If those banks run into trouble in the near future, they will simply be taken over by the government .... dare I use the N word .... Nationalize?

[Lucky Luciano]

3. I think banks that pay it back are fully aware that having to tap

the government again for more money would be horrible. That is a huge part of their thought process for whether to give it back. They need to be 100% sure that they will never come with their hands out again.

[PBS Poll-435]

4. Um...

Under TCPP, nearly every moderate to megabank in the US took taxpayer $$$ in exchange for preferred stock.

Many DID NOT WANT TO TAKE THE FRIGGIN' money. They were persuaded/threatened into taking the money. This is a matter of FACT and I don't know why this still needs to be explained to you on every TARP-related thread.

[ficus1]

6. The only reason why any of these banks are still in business

Is because the federal government saved the weakest institutions. Excessive compensation in the financial sector is detrimental to the long-term health of our economy. The longer the federal government can limit compensation in the financial sector and discourage people from working in it the better. Don't let them pay the TARP funds back until stronger regulation is actually in place instead of just in the works.

[alcibiades_mystery]

5. No shit

Tell me something I didn't know when I woke up this morning.