Sunday, April 5, 2009

I really hope Stuart Varney is wrong about Obama not wanting TARP funds back

Stuart Varney on WSJ Opinion 4-4-09

Here's a true story first reported by my Fox News colleague Andrew Napolitano (with the names and some details obscured to prevent retaliation). Under the Bush team a prominent and profitable bank, under threat of a damaging public audit, was forced to accept less than $1 billion of TARP money. The government insisted on buying a new class of preferred stock which gave it a tiny, minority position. The money flowed to the bank. Arguably, back then, the Bush administration was acting for purely economic reasons. It wanted to recapitalize the banks to halt a financial panic.

Fast forward to today, and that same bank is begging to give the money back. The chairman offers to write a check, now, with interest. He's been sitting on the cash for months and has felt the dead hand of government threatening to run his business and dictate pay scales. He sees the writing on the wall and he wants out. But the Obama team says no, since unlike the smaller banks that gave their TARP money back, this bank is far more prominent. The bank has also been threatened with "adverse" consequences if its chairman persists. That's politics talking, not economics.

I really hope this is not true. This story needs some serious validation, but if true, is the realization of most of the kookiest ODS sufferers (Obama Derangement Syndrome).

Will keep you posted if I find out anything on this.

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Behave. If you don't know what that means, then you probably won't behave. I can take some good licks of you got them but idiotic name calling and ad hominems will get you nowhere. However, if your insult makes me laugh, it's probably OK.