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I am an amateur writer, I love to blog and connect with people online. If I could my whole day would be spent just writing.

Tuesday, July 20, 2010

Bailout helps what banks?

On Obama’s desk is a financial reform bill intended for Wall Street. The idea is to keep the recession of the last few years from happening again, and to not have to bail out any more banks. Now we wonder who were the banks bailed out. The public should know who was bailed out since they funded.

Wall Street received much of the bailout

707 banks were a part of TARP, or the Troubled Asset Relief Program, reports CNN Money. $ 40 billion was split between 690 of them. The average for those 690 banks is $ 57,971, 014.49 apiece. 13 of the 17 largest financial institutions which were given the majority of the bailout already paid back the government. Profitability is shown by the, as outlined by Market Watch, $ 4.8 billion reported in profit by JP Morgan chase within the second quarter.

Struggling main street

The same CNN article also highlighted that only $ 15 billion of the $ 40 billion lent to small and medium banks participating within the Capital Purchase Program, or CPP. Main street banks got some of the money, but large banks had to take the money. 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 conserve 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 can be normal to have standards that are strict now. If main street banks go under, what will happen? Will our list of institutions be limited and costs us $ 700 billion to watch our money?

More info about this topic at these websites

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



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