Treasury getting tough on TARP deadbeats

[Roland99]

Source: MarketWatch

The number of banks missing payments on bailout money they got from the U.S. government has jumped and the Treasury Department is starting to get tough.

In August, 123 financial institutions missed dividend payments on securities they sold to the Treasury Department under the Troubled Asset Relief Program, or TARP. That’s up from 55 in November 2009, according to Keefe, Bruyette & Woods.

Of the 123, seven institutions have never made any TARP dividend payments. These are Anchor Bancorp Wisconsin, Blue Valley Ban Corp, Seacoast Banking Corp., Lone Star Bank, OneUnited Bank, Saigon National Bank and United American Bank, according to KBW.

...

Skipping six straight TARP dividend payments is an important threshold because Treasury gets the right to appoint two directors to the offending banks’ boards when that happens.

Read more: http://www.marketwatch.com/story/treasury-getting-tough-on-tarp-deadbeats-2010-09-15?dist=afterbell

[onethatcares]

1. I say.

Jack their interest rates to 39.9 % and have the board of directors answer constant calls from bill collectors asking when the balance will be paid in full.

[Roland99]

2. I'll drink heartily to that!!

[mbperrin]

3. It's the LEAST that should happen to them.

A poke in the eye with a sharp stick would also be satisfying.

No, I didn't forget the sarcasm sign.

[freebrew]

4. Beat me to that one....

and cancel their insurance.

Better yet. Call the note in full. That's what banks do when you're in default.

[chunga85]

5. The public opinion is slowly changing...

The stigma placed on consumers is shifting to the weasels on Wall Street. About time!

[tomm2thumbs]

6. please... just one more play on the Roulette table before I have to give it back... puhllllllease???

they are still gambling it on the stock market and reaping big bucks - why on earth would they want to give it back?