September 2, 2011
Penn Liberty Financial Corp., Wayne, said it had received $20 million from the U.S. Department of Treasury's Small Business Lending Fund and had used $10.5 million of it to repay the Treasury department's 2008 Troubled Asset Relief Program. Penn Liberty operates nine locations in Philadelphia's western suburbs. The bank had $421 million in deposits and $396 million in loans outstanding at the end of June. The Small Business Lending Fund is a $30 billion fund created last year that is supposed to encourage loans up to $10 million to companies with up to $50 million in annual sales by providing capital to community banks with assets of less than $10 billion.
January 27, 2012 |
WASHINGTON - A government watchdog says that U.S. taxpayers are still owed $132.9 billion that companies haven't repaid from the financial bailout, and that some of it will never be recovered. The bailout begun at the height of the financial crisis in September 2008 will continue for years, according to a report issued Thursday by Christy Romero, acting special inspector general for the $700 billion bailout. Some bailout programs, such as the effort to help homeowners avoid foreclosure by reducing mortgage payments, will last up to 2017, costing the government an additional $51 billion or so. The gyrating stock market has slowed the Treasury Department's efforts to sell off its stakes in 458 bailed-out companies, the report said.
September 17, 2010 |
WASHINGTON - The government says it has raised $213.7 million from the sale of warrants it held in Radnor-based Lincoln National Corp. It is the latest move to recoup costs for taxpayers from the $700 billion financial bailout. The Treasury Department said Friday that it sold 13.05 million warrants at a price of $16.60 per warrant. The government had set a minimum bid price of $13.50 for the warrants, which give the purchaser the right to buy common stock at a fixed price. The government obtained the warrants when it provided $950 million to Lincoln National in July 2009.
May 1, 2009 |
It is "outrageous" that the federal government - more than a year after the collapse of the Bear Stearns Cos. Inc. - has not begun a serious discussion of how to create a more stable financial system, former Federal Reserve Bank of St. Louis president William Poole said yesterday in Philadelphia. Poole, who grew up in Wilmington and graduated from Swarthmore College, said the nation could face "10 to 20 years of limping along in this very uncertain and unsatisfactory situation" if things continue as they are, with the government bailing out companies deemed too big to fail.
January 27, 2009 |
It's probably not what the architects of the federal bank bailout intended. Most of the banks that agreed to finance $22 billion of Pfizer Inc.'s proposed $68 billion acquisition of Wyeth received funds from the federal government under its Troubled Asset Relief Program, or TARP. Now, they are participating in a deal that likely will lead to thousands of job cuts at the combined company. Morris Segall, president of SPG Trend Advisors, an economic-research firm in Baltimore, said deals like this were "totally anathema to what Congress has in mind.
April 2, 2009
IMAGINE APPLYING for a business loan and telling the bank that instead of providing a plan for how you will use the money and how your company will make a profit, you'll do what you think is best and might let the bank later know what you did with the dough. Think you'd get the loan? Neither do we. Yet this is exactly the approach the Treasury Department is taking in giving away about $3 trillion of our money, says Elizabeth Warren, the Harvard professor appointed by Congress to oversee the bailout of financial institutions.
May 9, 2009 |
Wells Fargo & Co. chief executive officer John G. Stumpf had a pretty good reason why he couldn't fly from his San Francisco home to give a speech before Philadelphia's business community yesterday. Actually, $7.5 billion worth of reasons. The release of the results of the "stress tests" on 19 big banks by the Federal Reserve on Thursday at 5 p.m. meant that Stumpf's bank, which bought Wachovia Corp. in January, must raise $13.7 billion in capital. In a conference call Thursday evening, Stumpf told analysts that Wells Fargo didn't think it needed any more capital.
May 30, 2009 |
Sun Bancorp Inc. in Vineland, N.J., this week joined the handful of banks around the country that have ended their involvement in the federal rescue program for banks. Sun paid $2.1 million to buy back a warrant that gave the government a 10-year window to buy Sun shares at a preset price. Critics have pounced on the Treasury's repurchase deals with several relatively small banks, such as Sun, as short-changing taxpayers, who have trillions at stake in the nation's many-pronged economic-rescue effort.
March 18, 2011
It's great that the federal bank bailout program known as the Troubled Asset Relief Program will cost taxpayers much less than the $356 billion originally projected. At $25 billion, the cost is still large. But as the Congressional Oversight Panel said in its final report on the Treasury Department's implementation of TARP, what's unknown is how much the success of TARP in stabilizing the financial system may cost us in the future. Because the federal government showed its willingness in a crisis to rescue anything deemed "too big to fail.
December 31, 2008 |
GMAC Financial Services' $5 billion federal rescue, on the heels of the $17.4 billion automaker bailout approved by the Bush administration this month, gives some relief to auto dealers who had blamed the industry's steep drop in sales partially on a lack of affordable credit for car buyers. Michael Martin, who owns Chevrolet and Saturn brand dealerships in Manassas, Va., said he believed the loans would be key to turning around the auto industry, adding that GMAC's loosening of credit sets an example for banks that have yet to use their bailout funding to free up consumer loans.