List of Banks That Took TARP Money
Banking NewsWhere is all that TARP money going? Did your bank take a cut of the billions in bailout dollars authorized by Congress last fall under the Troubled Assets Relief Program (TARP)?
Public interest group ProPublica is keeping a list of banks that took TARP money. What’s surprising about the list is not how much money the big banks have already received under TARP, but just how many small banks are on the list, too. That said, here’s a breakdown of what the top 10 TARP money recipient banks have taken:
- Citigroup (NY): $45 billion
- AIG (NY): $40 billion
- JPMorgan Chase (NY): $25 billion
- Bank of America/Merrill Lynch (NC): $25 billion
- Wells Fargo (CA): $25 billion
- General Motors (MI): $14 billion
- Goldman Sachs (NY): $10 billion
- Morgan Stanley (NY): $10 billion
- PNC Financial Services (PA): $7.58 billion
- U.S. Bancorp (MN): $6.6 billion
So, a lot of banks have taken money. But what are they doing with it? A few, including Bank of America and GMAC, the lending branch of General Motors, have pledged to use TARP money to make new business and consumer loans. Personally, I’m of the philosophy that the answer to a problem caused by debt is not more debt, but economists making these decisions presumably know better than I–or do they?
What do you think? What should banks be doing with this money?
January 7th, 2009 at 11:25 am
The sad thing is I don’t think anybody is going to learn a lesson from this mess. Whether it’s now or five years from now, the banks will turn around and just start making stupid loans again that people can’t afford. So not only will people go into more debt, but taxpayers will have gone into debt to allow people to go into debt. THAT MAKES SENSE!!!
January 8th, 2009 at 3:42 pm
History usually repeats itself. It’s just a matter of how long until the next mess.
January 19th, 2009 at 9:01 am
Carnival of Personal Finance No. 188: The Jane Austen Edition…
Welcome to the 188th Carnival of Personal Finance! Our theme for this week’s edition is Jane Austen, as I am a admirer of both her novels and the films based on her novels, which are graced throughout with witty commentary on society — and in …..
January 21st, 2009 at 4:03 pm
Investors need a list of financial institutions that did NOT drink the TARP cool aid. There is too much political risk involved in investing in firms in hock to Uncle Sam.
A bank analyst on CNBC suggested three ticker symbols of TARP-free firms– PBCT, TSF AND FHN. Needless to say, their stock performance far exceeds that of the leading TARP victims — BofA, Citigroup and AIG.
If the government expects private investors to ever again supply equity capital to the financial sector, Treasury will have to stop “helping” such firms with preferred shares (essentially just more debt) and warrants (potential dilution of EPS).
TARP’s so-called “capital infusions” pushed common stockholders to the back of the line, scaring capital away. The net effect of public capital crowding out private capital has probably done more harm than good.
January 23rd, 2009 at 11:51 am
Pigs get fed ,hogs get slaughtered. People should remove their money from the greedy banks(hogs which fed at the tarp) and deposit their money at banks that are frugal.——all banks are swine. Sane people do not reward hogs, they slaughter them. Be sane, people!!!
Pib
February 7th, 2009 at 3:48 pm
I will be closing my Bank of America account, and putting it in a more responsible bank. I recommend others do the same.
March 1st, 2009 at 8:51 pm
I would like a complete listing of every bank nationwide that took any Fed Money, be it TARP of any other money. Where can I get this complete list?
May 18th, 2009 at 8:23 pm
After 28 years as an excellent customer, Wells Fargo has refused us a small line of credit to serve as overdraft protection. Ironically, we asked for this at THEIR suggestion because we are PAYING OFF our home equity line which had previously served that function. After 28 years with nary a missed payment, Wells Fargo cannot trust us with a puny line of credit to protect us from their exorbitant overdraft fees. 28 years–I can’t get over it. Now I see that Wells Fargo took $25 BILLION in TARP money–money that they were supposed to LEND to the taxpayers who bailed them out. Unbelievable. The utter gall. We will be closing all of our accounts. If after 28 years, Wells Fargo cannot recognize the value in keeping a trustworthy customer, they deserve to go broke. Please . . . if you are a Wells Fargo customer, I encourage you to follow our lead.
June 11th, 2009 at 5:32 pm
[...] Once the government was given the power to interfere in the private business sector, any entity that chose to take government money would be indebted to the government. The government would be able to control an entity, since it would now have a financial stake in that business or corporation. That’s exactly what happened with Bank of America and any other businesses that took money from the government. B of A was forced to do the government’s bidding…or else. They had no choice [Article - List of Banks That Took TARP Money]. [...]
June 22nd, 2009 at 9:33 am
History DOES repeat itself. If you were around and old enough to have seen the real estate bust in the early 1980′s you would know that. ARM’s weren’t a good idea when interest rates were 17% for mortages and they were an even worse idea when interest rates were at historic lows. How stupid and greedy do you have to be to believe that mortage rates would drop below the 4 to 5% range they have been in for several year? We have an insurance agency and we’ve seen MANY MANY falsified appraisals in the last few years to justify the mortgage given on a property that was never worth what it was mortgaged for. And now, those of us who were responsible and didn’t buy more of anything than we can afford will get to pay for it all. YIPPEE!!!!!
NOT!!!!!!!!!
July 7th, 2009 at 11:24 pm
It should be used to help those in hard financial times. Like credit card forgiveness or mortgage debt forgiveness. These companies received money because people are having hard times why not help those who need it. Why give loans when people can’t qualify, or take on more debt they don’t need. People need the help not the businesses. i haven’t seen any improvement since all these banks received money. There debt is being paid, but what about those on financial hard times who have lost their job or had hard times that where not anticipated. Let’s help the little people and not the big businesses. The government bails companies out, what about the true suffering people and not banks.
August 7th, 2009 at 6:53 am
They took our money through the government and then created new ways to make us pay back the loans we gave them with preditory fees, return check charges, insufficient fund charges, holds on our money until charges accrue. The little guy can’t manage his money when the big guy gets to bite it first and as much as he wants to take when he wants to take it.
November 20th, 2009 at 12:51 pm
I just applied for a loan with Chase..
After being “pre-approved” and they collected my $750.00. I had to “chase” them for a reply.
After a two month delay I was denied the loan.
I feel I am a victim of fraud, where is the government now, where is the news media to report on this??Look on the net there are many stories that are the same as mine.
January 19th, 2010 at 6:04 pm
I went to our local Wells Fargo Bank and payed off my car loan early then closed my bus. accounts and personal account of a substantual amount. When asked why I closed my accounts I told the teller that I would rather do business with a local bank that did not take the tarp money he acted suprised. What suprised us all is that three others that heard the conversation also closed their accounts as well…small run on the bank? Dont know how many accounts they lost that day due to one person caring where their money went! Go small and go local, if my bus. was going under do you think the gov or Wells Fargo would have helped out?
January 28th, 2010 at 5:41 pm
Can someone point to a set of rules TARP Banks must adhere to with respect to shortsales and credit reporting?
April 20th, 2010 at 10:13 am
Drew,
Your banker probably looked surprised as Wells Fargo was one of the banks that paid back their TARP money in full. It is mostly smaller, regional banks who still have not paid back (outside of AIG) as well as the automobile industry (which no one seems to realize is one of the largest debtors in the TARP program who has not repaid). Are you willing to stop buying or sell your American cars as none of these groups have paid their TARP money back? The problem in the US is that very few people research in detail what is going on despite the information being out there. There are too many people making decisions based on emotion and the watered down “news” that the media provides. Don’t let our media drive you to act on emotion without information and logic. I have no association with any bank but am continuously amazed at how easily Americans are led by the media on almost any emotional topic.
May 31st, 2010 at 12:12 pm
Great site you have. Congrats!