Fed refuses to disclose recipients of bailout money

Remember this? Paulson originally wanted decisions regarding allocation of bailout funds to be nonreviewable. They lost on that point – it was not included in the final bill – but, in true Bush Admin fashion, they are acting as if they won that and more. Story here.

Jesus christ.

When they do release it, they redact the amount. That is Paulsons idea of disclosure…

Well, fuck. I knew it was a bad idea to give them money.

To some degree it makes sense. This whole mess is a lot about confidence in banks. If a bank just got bailed out to the tune of 250 bil from the gov, would you be confident in it? No, you’d probably try to grab your money and run, sealing the fate of the bank in question.

What are you upset your not a personal friend so didn’t get a check?

What? If my bank just got bailed out to the tune of $250 billion, I’d have every confidence in it. If the Feds just gave them $250 billion, they’re sure as hell not going to let them fail for want of another $50 billion or whatever.

Anyway, everybody knows which banks are failing.

Tough shit! These sharks are getting money because they disregarded all sense and reason and made irrespoonsible business decisions. The only reason they’re getting money is because the whole damned INDUSTRY lost its mind. Any single business to do this would be allowed to swirl right on down the tank.

Short of having to eat that particular crow the banks in question deserve to have a very public and humiliating black eye. They should have to work to earn back some customer confidence.

Joe six-pack who lost his house to a foreclosure (ultimately his own damned fault for accepting a ridiculous and risky loan proposal) is going to get fucked on his credit bureau for the next 7 years and he won’t EVER get a government bailout. There is no good reason the banks should come away from this shitstorm looking like pristine little angels.

I agree. But if this is what you want, they shouldn’t get the bailout in the first place.

Once you give them a $250 bil check, you can’t afford to let them get that black eye. They need to succeed, otherwise you just flushed $250 bil down the toilet. It it wouldn’t even be a military grade toilet. Just your standard issue toilet from the bargain isle at Lowe’s.

Heh…in my world we’d let the banks swirl on down, deny them bankruptcy protection, and then say to Joe Sixpack, “Gee. Looks like whomever you owed all that mortgage to just passed away. Guess the loan’s forgiven!”

Bet that would reawaken the real estate market.

As a lawyer I can tell you, debt is never extinguished by the demise of the creditor entity, whether it be a natural person or a corporation; it becomes an asset of the entities heirs or receivers. Otherwise, every moneylender would need an armed bodyguard 24/7.

Hey back off! MY world. :slight_smile:

Not altogether a bad idea…

The problem with hiding information is that the market can’t value things correctly, which is what leads to spectacular meltdowns later on down the road. With the recent turbulence, investors are going to be very leery of any investments with significant potential unknowns. I do agree that financial information needs to be presented with an eye toward avoiding panic, but beyond that we should seek more transparency, not less, if we want to restore confidence.

:confused:

And the remaining banks wouldn’t make any loans, or get money to make loans, and we’d be further in the crapper than we are now.

First of all, if you’re a depositor you’re insured by FDIC, so no problems.

I think the reason for secrecy is because the banks aren’t using the money for the purpose Congress intended. It was meant to make loans to unfreeze the credit markets. Instead, the banks are either sitting on the money to improve their balance sheets or planning to use it to buy out other banks., both of which are going to get Congress pissed. This is all going to change Jan. 20, so the only reason for this is to get the money spent before then.

Up to $100,000. If you’ve got more than that in the bank you have to be careful. Of course, if you’ve got more than that in the bank, Obama is going to take it away anyway. :smiley:

Put your money into cocaine. The drug trade is recession-proof!

actually, it’s up to 250K now.

Is it just me, or has there been a rash of really, really stupid posts much like this one the past month or two?