The antibank fervor with the Occupy Wall Street crowd may be more than a bit misguided.  Many of the attendees of these protests speak out about the banking industry and the bail out money approved by Congress.  Not only does this subject annoy the Occupy participants but it appears to raise the ire among the general public.  Bashing banks has been a major theme of Democrats in Congress and the President which just fuels this notion that the banks ran off with taxpayer money and should be regulated and beat into submission. 

Well…enclosed is the last email summary from the U.S. Department of the Treasury on how the TARP bailout program has progressed.  You can just skip to the last paragraph, which states the program has now created a net positive return of $13 billion with money still due the Federal government.  One more time, the total sum loaned out has been returned with an added $13 billion.  Maybe we should do more programs like that. 

Furthermore, try and dig and find out where the rest of the TARP money is.  No easy task.  Auto bailout money, that is not likely to ever turn out positive.  Some of the auto bailout funds were distributed to the companies prior to their bankruptcy filings and that money will never be paid back to the taxpayers.  The U.S government still owns a remaining 27% share in General Motors.  In fact, a recent White House report put the estimated loss to taxpayers on the bailout of the auto industry at $14 billion out of the $80 billion committed to the bailout.  Treasury Secretary Timothy Geithner acknowledged in April of 2011 “We’re going to lose money in the auto industry.” 

To call the auto bailout a success and the bank bailout a failure is lunacy.  And you have heard it here more than once, the economy needs filthy, rich banks that take risks to lead to an expanding economy.  Over regulation is a colossal mistake.  The public is just terribly misled about the auto bailout and bank bailout.  Occupy Capitol Hill not Wall St.  Congress and the President are pointing fingers everywhere except where the blame belongs.  But, banks are evil.

Treasury TARP Email:

WASHINGTON – The U.S. Department of the Treasury announced that the following two financial institutions have repurchased Troubled Asset Relief Program (TARP) Capital Purchase Program (CPP) investments, delivering a total of $210 million in proceeds today for taxpayers.

Bank of Kentucky Financial Corporation (Crestview Hills, KY): Repurchased all outstanding CPP preferred shares from Treasury’s original investment in the institution totaling $17.0 million and paid accrued dividends totaling $18,888. (Total Proceeds Today for Taxpayers: $17.0 million) Including today’s transaction, taxpayers received total dividends of $3.9 million from Bank of Kentucky Financial Corporation over the life of this $34.0 million TARP investment.  Note: Bank of Kentucky Financial Corporation also repurchased CPP preferred shares totaling $17 million on December 22, 2010.

First Midwest Bancorp, Inc. (Itasca, Illinois): Repurchased all outstanding CPP preferred shares from Treasury’s original investment in the institution totaling $193.0 million and paid accrued dividends totaling $214,444.  (Total Proceeds Today for Taxpayers: $193.2 million) Including today’s transaction, taxpayers received total dividends of $28.6 million from First Midwest Bancorp, Inc. over the life of this $193.0 million TARP investment.

Treasury continues to hold warrants to purchase common stock in Bank of Kentucky Financial Corporation and First Midwest Bancorp, Inc. – the disposition of which would provide an additional return to the American taxpayer from Treasury’s investment beyond the dividend payments it received on the related preferred stock.
 
In March 2011, Treasury announced that TARP’s bank programs turned a profit. Since that time, further repayments and income through TARP’s bank programs, such as the payment announced today, provide additional positive returns for taxpayers.
 
With today’s proceeds, taxpayers have now recovered more than $258 billion from TARP’s bank programs through repayments, dividends, interest, and other income.  That exceeds the original financial support Treasury made through those programs ($245 billion) by approximately $13 billion.

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