Bailout banks are paying debts instead of lending money
Excellent article from Taxpayers for Common Sense:
The New York Times published an excellent story about some of the problems with the financial sector bailout – the Troubled Assets Relief Program (TARP). The article chronicles how Independent Bank, located in Michigan, spent the $72 million it received under TARP to pay other loans it owed the Federal Reserve. This story perfectly illustrates how TARP goals and guidelines were virtually non-existent at implementation of this program.
After receiving approval to participate from the Treasury, Michael Magee, President and CEO of Independent Bank Corporation, stated the Treasury investment of $72 million will “assist us in continuing to meet the needs of our customers, communities and shareholders.” Shareholders may have benefitted, but customers and the communities the bank services got very little. Read the full story.
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Tags: independent bank, michael magee, michigan, tarp, troubled assets relief program
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