The financial reform bill that is heading for Obama’s desk is designed with Wall Street in mind. We do not want an additional recession and want to stop helping banks. So now we wonder who was really helped. Since the public funded it, they have a right to know who they funded.
Bailout had a chunk go to Wall Street
Within the Troubled Asset Relief Program (TARP), CNN Money reports there were 707 banks participating. From those 707 banking institutions, 690 of them had to split $ 40 billion between them. $ 57,971, 014.49 apiece, is the average of them. 13 of the 17 largest financial institutions which were given many of the bailout already paid back the government. Profitability is shown by the, according to Market Watch, $ 4.8 billion reported in profit by JP Morgan chase in the second quarter.
Struggling main street
$ 15 billion of the $ 40 billion was lent to smaller banks in the CPP, or Capital Purchase Program, according to the CNN article. Main street banks weren’t definitively left within the lurch, but the banks which were too big to fail certainly weren’t allowed to. 10 percent of those who got CPP loans have paid their debts already. Out of the small banks that nevertheless owe money from CPP loans, 15 percent have missed at least one payment.
Feed the wolves to save the sheep
The financial crash in 2008 nevertheless has Wall Street at the heart of it. The financial reform bill demands more responsibility as shown by the $ 550 million fine Gorman Sachs just received from the SEC, and it might be normal to have standards that are strict now. However, what happens if Main street banks go under? Will our list of institutions be limited and costs us $ 700 billion to watch our money?
Discover more details
CNN Money on TARP
money.cnn.com/2010/07/14/news/economy/Main_Street_banks_TARP/index.htm
CNN on Goldman
money.cnn.com/2010/07/15/news/companies/SEC_goldman/index.htm
Market Watch
marketwatch.com/story/jpmorgan-chase-reports-second-quarter-2010-net-income-of-48-billion-or-109-per-share-on-revenue1-of-256-billion-2010-07-15?reflink=MW_news_stmp
