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New report reveals the federal government’s hostile takeover of the banking industry

October 5, 2009

   A new report was released on Monday that claims the government forced the nine largest banks to accept TARP money whether they wanted, or needed, to or not– or else. These banks were given an offer that they just couldn’t refuse– literally.

Officials at Treasury, the Federal Reserve, and other federal regulators felt strongly that the nine institutions should not be permitted to reject the government’s capital infusions

  But what if the banks refused the billions of taxpayer dollars?

If a capital infusion is not appealing, you should be aware that your regulator will require it in any circumstance

  There would be no refusing, you will take the money and like it.

Furthermore, former Secretary Paulson told SIGTARP that, if necessary, the government would make clear to the nine executives that they had no choice but to take the money

  The government chose nine banks that didn’t need TARP money and forced them to accept it. The question is why? The answer that you will get from the federal government is that by giving healthy banks extra money they will be able to give out loans and this would stimulate the economy. The truth in my opinion is much more nefarious than that.

  We know that if a company accepts federal bailout money that company is subject to strict government regulations– including but not limited to executive pay restrictions. By forcing and threatening these banks into accepting federal bailout money the government is in effect forcing government regulations upon the banks. This was nothing more than a hostile takeover of the banking and mortgage industry designed to ensure that the federal government would be able to gain control over the banking industry.

4 Comments leave one →
  1. October 5, 2009 10:34 pm

    Youtube.com video “when the future falls” search marty denton

    Like

  2. October 6, 2009 6:50 pm

    How do you spell socialist—“Obama”! This is not surprising, but there should have been so recourse for these bankers. They are not stupid, but I suppose they they decided to fold rather than play the hand out.

    Like

  3. LD Jackson permalink
    October 6, 2009 7:57 pm

    This kind of thing gets my blood to boiling. There is no legitimate reason to force these banks to accept taxpayer dollars when they are already in good shape. One more reason I find it very hard to trust the federal government.

    Like

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