Friday, December 26, 2008

Where's the money?

TARP: The one word that's as waterproof as Tarpaulin.
If there's one thing that Banks in US have learned quickly: Get the money from the tax payer and disappear!
For instance read these Gems:
  1. "We've not given any accounting of, Here's how we're doing it," said Thomas Kelly, a spokesman for JPMorgan Chase, which received $25 billion in emergency bailout money. "We have not disclosed that to the public. We're declining to."
  2. "We manage our capital in its aggregate," said Regions Financial Corp. spokesman Tim Deighton, who said the Birmingham, Ala.-based company is not tracking how it is spending the $3.5 billion it received as part of the financial bailout.
  3. "We're not providing dollar-in, dollar-out tracking," said Barry Koling, a spokesman for Atlanta, Ga.-based SunTrust Banks Inc., which got $3.5 billion in taxpayer dollars.
Hmmm... so in effect the borrowers say to the Lender that they will not disclose how the money is being spent, was spent or will be spent: in essense: Get Lost.
Imagine if the positions were reversed:
If you or I go to the Bank to borrow (as a small firm) they ask your entire financial history as individual and as a LLC, your business, your balance sheets for past decade or more, your directors' personal financial histories (even though that has no bearing on a LLC which is supposed to be legally separate from its directors), and more.
In short, they force you to lay bare your complete dossier from your current order book and future order book, salaries, etc., before lending you $100.
And they also Foreclose for 30 cents due without hesitation.
But GOD forbid if you ask the same about the Bank who seized your money without your consent, because a ex-Goldman Sachs Director thought it was necessary.

In a lawsuit-crazy nation, am surprised no tax payer has sued the Banks as borrowers and asked the court to foreclose on their properties for not repaying them.

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