Banks refusing to account for bailout money given to them by the taxpayers.
Grrrrrrr….
It’s something any bank would demand to know before handing out a loan: Where’s the money going?
But after receiving billions in aid from U.S. taxpayers, the nation’s largest banks say they either can’t track exactly how they’re spending the money or they simply refuse to discuss it.
“We’ve lent some of it. We’ve not lent some of it. We’ve not given any accounting of, ‘Here’s how we’re doing it,”‘ said Thomas Kelly, a spokesman for JPMorgan Chase, which received $25 billion in emergency bailout money. “We have not disclosed that to the public. We’re declining to.”
The Associated Press contacted 21 banks that received at least $1 billion in government money and asked four questions: How much has been spent? What was it spent on? How much is being held in savings, and what’s the plan for the rest?
None of the banks provided specific answers.
Banks asked about this for this AP story (yes, it’s the AP but they’ve proven themselves to be no friend to banks and such) responded with canned PR fluff or simply said they weren’t going to discuss it. “We’re choosing not to disclose that,” and “We’re not sharing any other details. We’re just not at this time,” are the only responses these bank execs are giving. One even had the gall to say that and then express a preference that the AP not actually print that they were refusing to discuss the matter. Yeah, I’ll bet he did prefer that.
This is completely unacceptable. The bailout was handed over to these guys because they said they wouldn’t be able to operate without it, that the credit industry would collapse unless they got the cash. Now they won’t even account for whether it’s going to extend loans – as they said it would – or whether it’s going for corporate vacation trips to Fiji. And the line about not really knowing where the money went is pure bunk. Banks have made their business about knowing where their funds are. They wouldn’t be in business otherwise.
The story starts off with the statement that banks would never extend a loan to someone unless they knew where that money was being spent. I agree and I think we, as the banks’ bank, should get no less. Cough up the accounting or start coughing up the cash. Today.
Comments
Comment from cmgrayson
Time December 27, 2008 at 09:28
Yes, people are still more pissed off about the automaker bailout. I’m not sure why. The automakers wouldn’t need a bailout if the banks would start lending money. I know people with perfect credit that can’t get a car loan.
Comment from riverwatcher
Time December 27, 2008 at 11:52
The irony is only outdone by the hypocrisy, and that by the arrogance of those getting rich. Those giants making a living by lending on interest became gigantic by demanding transparency of their accounts, meticulously researching their potential customers beforehand, and hounding their account receivables. Laws are on the books limiting collections practices now because banks were historically abusive towards their debtors. That Congress/ White House seem ok – or powerless – about the Banks’ thumbing their noses at demands for accountability – is telling, both of the actual power structures in this country, and of the apparent failures of the economic structure that led to this bailout as necessary. Of course, no one is talking about the root causes, other than “corporate or consumer greed” – like we’ve never had that before. Without gov’tal intervention, I think both the banking and auto indus would suddenly find a way to become relevant, sustainable and even compete; flourish. As it is, we’re loading the next generation w/ more debt & problems of ours that we should have resolved, but are passing on to them. Typical head-in-the-sand, no-pain, no-sacrifice, no leadership policies from Washington, which the public / press not only allows, but encourages.
Comment from Loudoun Insider
Time December 24, 2008 at 10:38
And people are still more pissed off about the automaker bailout?????????????