FYI, one of my mentors sits on the Board of Directors for a small bank in California.

[Mike 03]

This bank just received five million of the T.A.R.P. funds. This is a relatively healthy bank that caters, particularly, to small businesses; yet, they did request the funds. I was personally happy to see with my own eyes that some local banks are asking for--and receiving--some of these funds.

M

[tabatha]

1. Any hints to the name of the bank?

[Mike 03]

3. I would but I just can't. It would be a huge violation of a trust.

But it is small and only three years old.

ON EDIT

In fact, it might even be illegal. I'm not sure.

[EFerrari]

14. It was probably illegal for him to tell you so, a good idea for you

to protect that confidence.

[tabatha]

15. Ok - that rules out my bank which is much older, and did receive TARP money.

There is a newer one down the road, and which also received TARP money that it was prepared to loan out. So not all banks are sitting on the money.

[david13]

4. It was

in the news stories. Santa Ana or Anaheim, I forget the name. They probably are not the only ones.
dc

[ayeshahaqqiqa]

2. If they pass the money on

in the form of loans to keep small businesses afloat and to assist home buyers, I'm all for it.

[Donnachaidh]

5. if they are a *healthy* bank, what was the point of asking for funds?

Do they have plans to immediately put it forward for the community, or are they going to hoard it like the other banks?

[MichiganVote]

12. My question exactly. Healthy or healthier banks don't need this money.

[Jack Sprat]

6. Bankers tell me they are barely making a profit

Thus, the low interest rates they are paying on interest bearing accts and CDs. The trouble is that the low rates of return are not bringing in new deposits. They claim they are just staying above the water line.

[Jane Austin]

10. Maybe they should consider how much of the financial pie

credit card companies are chewing up with their astronomical interest rates.

[MichiganVote]

13. The maybe thye should cut back on some of their salaries. We surely are.

[pinto]

7. There was an article in today's SF chron about TARP.

An overview of funding - a number of banks, Wells Fargo was the biggest, iirc - and some info on how the funds are being used, so far.

Banks seem to be saying that TARP funds aren't only for banks in trouble, but are accessible to fund lending lines in even relatively healthy banks.

I'm not well versed on the economics of how this all works, but thought it was a good article, from a layman's POV. I'll drag a link over when I can.

[acmavm]

8. And now the question is are they gonna sit on the money or put it back

into circulation?

[Mike 03]

11. I will find out. I should have asked that question, but I didn't.

I promise to find out and post it when I do.

M

[sandnsea]

17. Will they rewrite mortgages

Of the houses that are now overvalued, so people can keep their homes.

[david13]

9. Orange County

in California. There are at least 2 small banks that recvd money. And others in CA.
There are no restrictions on the money.
However, they will lend it out. That is their business.
dc

[sandnsea]

16. Any bank that lends on mortgages needs help

Housing prices are falling. Every bank has mortgages on houses that have lost value. That is bad for the balance sheet of any bank. I hope they're getting enough help and using that money to make up for the loss in mortgage values. It would be best if they identified, and rewrote mortgages.