Suppose that you were in a job where a lot of people were doing the same thing. Now suppose all of the people around you were failing at their job, but you were succeeding. The boss comes around, you would expect he would praise you, right?
Well not if you were a bank. Seems a bank in Massachusetts was doing a good job. Actually, an exceptional job. They had NO bad loans. While this article isn't clear, I would assume they got no TARP money since they had no Troubled Assets that needed Recovering (that's the TAR part of TARP).
But instead of praising the bank, the FDIC is criticizing them. Saying they should have taken more risk. Helped out "the community" more. Now I'm all about helping the community. Search back through my blog for the word VITA and you'll see the way I'm doing this now. Taking every Friday & Saturday afternoon, not to mention the classes I went to before that. But that's my choice.
If this bank wants to help the community, there are lots of ways they can participate. I'm willing to bet they already help in a lot of ways, they've just chosen not to write bad loans. Isn't that what got us into this trouble?
4 comments:
This is exactly why our current administration has no clue about banking in general,or the stimulus package in specific.....if any of this made sense, they would highlight this bank as a model bank, one who evaluated what risks were best and avoided the bad risks, to ensure their stockholders the maximum value, instead of "bailing out" the minimum, which is the TARP goal...........Why is our current administration trying to do everything backwards???? I'll tell you. It is a smoke screen. They don't wan't you to see what is really going on - which is that thier little brand of socialism is being implemented piece by piece. Why else would we have a president who has done more to add debt to this country in his first 2 months than all other past presidents from the founding of this nation COMBINED!!!!!!! He doesn't get it. His team doesn't get it, but the Ameican public does. We want a change, and we will not be silent.
The bad banks should be allowed to fail, and then capitalism will take over and the bad parts will be sold off in pieces to spread out the risk, where it can be absorbed in way which will not crush the economy.
The American way has always been to do things better, smarter, more efficiently. From where I sit, Obama seems to be providing incentives to do exactly the opposite.
Pray for this man and his leadership team, for if he continues down this path, the damage to America will be irreparable. He needs it, his staff needs it, and I pray that he finds Godly wisdom quickly!
Geez, one would get the outrageous notion that the government just wants to run the bank themselves.
Saw this story, stunning. I actually have mixed feelings about pushing banks to free up credit right now. On one hand we do need to get the money moving but at the same time, it's deja vu all over again.
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