34 banks opted not to pay their quarterly dividends to the Treasury Department in August -- that's up from the 19 deadbeats for the month of May.The biggest offenders were American International Group (NYSE: AIG), CIT Group Inc. (NYSE: CIT), First Bancorp (NASDAQ: FBNC) , Sterling Financial Corporation (NASDAQ: STSA), and UCBH Holdings, Inc. (NASDAQ: UCBH).
The Treasury Department provided the USA Today with a pretty condescending explanation: "For some banks, it may be prudent to exercise their right not to pay dividends in a particular month, and we respect their right to do so. To draw any broader conclusions about the state of the banking sector from one month is highly premature and speculative."
Right: Just because banks aren't paying back the money they have an obligation to pay back doesn't mean there's a problem. Yeah, OK -- And my name is Ken Lewis and I'm "phenomenally good."
Critics charge that the Treasury Department was overly rosy in the predictions it made when it started doling out money. The banks that got TARP money supposedly passed stress tests and were deemed "healthy". But if they're healthy, why can't they pay their bills?
Of course, admitting that there is a problem would mean that the Treasury Department would have to admit making a mistake.
So instead we get absurd statements that explain to us dullards why "just because someone can't pay us they money they said they would, that doesn't mean they have financial problems."
So long peak oil, here comes peak uranium
Black Friday expected to be strong, no promises for Christmas
Will JPMorgan chief Jamie Dimon be our next Treasury Secretary?
Reader Comments (Page 1 of 1)
10-08-2009 @ 4:52PM
Donovan said...
Gee, I wonder if little Timmy will double these banks interest rates, and hit them with late fees? JERK.
10-08-2009 @ 6:01PM
Ray said...
it's coming, can.you feel it?
10-08-2009 @ 6:30PM
Mikie said...
Maybe we should stop paying our bills and say we don't have financial trouble. We just didn't feel like paying this month!!!!!!!!!! Ha Ha What a joke
10-08-2009 @ 6:50PM
thedude said...
now we just have to wait for Obama to apologise to the banks for the US government not properly communicating to the banks that TARP loans may or may not need to be paid back
10-08-2009 @ 7:40PM
Wanda said...
What a JOKE!!! The banks can pay back TARP dividends when they feel like it and maybe not pay them back at all...FUNNY, I just lost my job, trying to get a modification and all the bank does is keep adding 5% late fees and penalties to my mortgage payment! How do you make a mortgage payment only making $250 a week and needing to feed the kids, buy gas to look for work, pay for health insurance, utilities etc. etc.....???? You can bet they won't give me a break but I just bet you when they need more TARP money they WILL GET IT!!!!!!!!!!!!! I'd really like to know WHEN there is going to be REAL HELP for the unemployed to stay in their homes and help the people who really need it? GREED is the name of the game these days, the HE_L with people like us, we are nothing in their eyes all they can see and feel is money linning their pockets! It just makes me sick...But we can all do something about that come election time!
10-08-2009 @ 8:23PM
Lewis Ermer said...
There are 45 members of Congress who are making money off the mortgage crisis, there was a way for the banks not to foreclose on homes and there was a way out of the mess that we are in if someone would of listen to someone else other then Congress and the Banks and we all would of kept our jobs and went on as if everything was good...but no the banks made mistakes and wanted the money now ..........and we payed......so as for these banks not paying....45 million Late fee and higher intrest rate but no they will not pay...Bank Of america has not paid one dime back......
10-08-2009 @ 10:23PM
Mel said...
Isn't there a reality show on TV called Repo Man? I think it is time we sent the Repo Man out to repossess the banks. Then we could sell off the properties and every town of ten people will cease to have ten banks. My town is so paranoid that when a new tenant moves in they put a sign in the window that says something like "No, not another bank." I think that is neat.
10-08-2009 @ 10:42PM
Optionsmaster said...
This article is old news.
He's referring to quarterly dividend from Aug. 3rd.
Tell me somethig new......
10-09-2009 @ 8:28AM
1854wilson said...
i am sorry to the american people they are like agood milking caw they work hard to pay for the rich when the rich need money they get money from the taxpayer when the poor need money they work for the rich what an american dream
10-09-2009 @ 11:22AM
gccms said...
And that is a surprise to who?
10-09-2009 @ 9:56PM
Susan said...
Does it surprise anybody that AIG is not paying? Major bonuses to the idiots that put them in a really bad position and now they cannot pay thier bills. Welcome to America where all born and raised here get screwed by everybody.
10-27-2009 @ 8:31AM
john dumas said...
Value of money = (taxing ability - (debt*interest rate))/ money outstanding. tax a. = (14 trillion gdp *.33) = 4.6t
debt * .04 = 12t * .04 = .68t 4.6-.68= 3.92t 3.92/ 8.5= 46 cents. Assuming a max tax situation of 1/3 which is impossible, a debt stopping at 12 trillion?, and keeping interst rates low at 4%, and stopping the money presses, the dollar in the best case is at some point heading for 46 cents?