My brother works for a small midwestern bank that is very well capitalized due
to its conservative lending and investment practices. He related this to me
when we were chatting over the holidays:
The government is "offering" TARP funds to all banks. They were told that if
they participated in the program that the bank examiners would be very
"lenient" when reviewing their future lending and banking practices. Of
course, if they participate in TARP the Fed gets an ownership stake in the bank
in the form of preferred stock, too.
He said it was quite a contentious issue for them, as they didn't want to
participate, and didn't need to, but felt that if they didn't that there would
be negative effects from bank examiners and ultimately the federal government.
So they signed on, albeit grudgingly.
--- On Mon, 12/29/08, Mountain Man <maontin....@gmail.com> wrote:
> From: Mountain Man <maontin....@gmail.com>
> Subject: Re: [MBZ] OT A letter from GM and a response from an industry
> vendor's President.
> To: "Mercedes Discussion List" <mercedes@okiebenz.com>
> Date: Monday, December 29, 2008, 11:15 AM
>
> -----Inline Attachment Follows-----
>
> --R wrote:
> > he said he would not have given the banks
> > a penny of "bailout money".
>
> I believe that that program is operating correctly and
> successfully -
> if I am to believe the news stories.
>
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