Four Banks Are First To Repay TARP Money

Bloomberg News:

Iberiabank Corp., Signature Bank, Old National Bancorp and Bank of Marin Bancorp became the first banks to repurchase shares of preferred stock sold to the U.S., exiting a program that imposed restrictions on recipients.

Iberiabank, the first to apply to return the money, redeemed the shares for $90 million, will record a $2.2 million first-quarter charge and a $1.1 million dividend tied to the capital, the Lafayette, Louisiana-based lender said in a statement today. Old National said it redeemed $100 million, Signature Bank bought back $120 million and Bank of Marin paid $28 million.

Read the whole story: Bloomberg News

Comments

[kdublya]

Good. Better to see where the chaff is.

[mollyjackson]

Good deal, Obama can't put his thumb on these banks.

[jsarets]

Why should banks carry interest-bearing liabilities with strings attached when they can sell their toxic waste to investment funds backed by the Federal Reserve?

What we're seeing is Fed facilities displacing Treasury facilities. It's sleight of hand. It's like paying off one credit card with another.

The meaningful difference for taxpayers is that instead of holding stakes in whole banks, both the good and the bad, we're now taking stakes in only the bad parts.

[PhilipTaylor]

Here is a Three Step FORMULA (these are employees NOT INDEPENDENT SELF-CONTAINED BASEBALL PLAYERS OR GOLFERS)

1. Use any FORMULAS YOU WANT BUT THEN:
2. Set Limit at 20 times lowest paid EMPLOYEE like they do in Canada!
3. NO ONE CAN Make MORE Than the President of the US of say $1.5 Million!

So play your illusionary games but then apply these TWO RULES!

These people will have nowhere to GO if we apply these rules across the BOARD in US!
Let them go to CANADA if they think they can do better!

[Harrier]

A stress test means finding all te skeletons and seeing the extent of the damage the executive played.

[drymartini1]

i hope taxpayers and the govt dont whine about the banks paying the money back.

[PhilipTaylor]

CORPORATE AMERICA HAS BEEN SKIMMED TO THE BONE!

The SKIMMING of AMERICAN CORPORATE WEALTH by Executives, Managers, Sales Staff, Analysts, and others into employee pockets has left America with weak “Ghost” Corporations that can NOT survive even moderate Economic Downturns without robbing the Taxpayer!

“Wall Street/Corporate CUT-THROAT Culture" has been taken to its rightful conclusion and a NEW Culture will Emerge. One more balanced with the rest of America, more just, less dependent on the Taxpayer, more able to survive, accountable to Americans and their Government, and able to make and keep its profits.

[nomadicexpat]

this is actually bad news. the tarp money is there as a capital cushion, it was designed to allow them to compete and operate effectively. the political interference has forced them to return the money which means quite simply that the american economy is worse off

i know people love to say "they stole our money" but the fact of the matter is you invested and then lost your collective minds ..

[dandypuddin]

Which means that quite simply, the banks could give a hoot about us. Nothing new there.

[AngieMom57]

I wonder when our local community bank will repay it's two million?

[jerrypl]

Wake up America, these 4 bankstas are scamming YOU!!! They have not written down their toxic mortgage debts, therefore they have pretended they have no liabilities. Let us see their balance sheets and all their off-balance sheet liabilities before they make these claims. I will not take any of these bankstas at face value.

http://eye-on-washington.blogspot.com

[Carolab]

Yup--and they only did it because they were going to have to pay dividends and limit bonuses.

The TCF bank here in Minnesota returned the funds for the same reasons -- they didn't like the terms -- and even said that they had been forced to take the money. So they didn't even need it, supposedly.

During the 1930s FDR created the Resolution Trust Company to aid banks who weren't members of the Fed's system. These banks were forced to publicly announce they took the funds -- which caused them significant problems as investors and depositors then eyed them warily. It even slowed down the recovery. Of course this was all done to the benefit of the Fed -- whose member banks continued to do better.

END THE FED.

[aercolini]

Yeah that's great. How much to AIG (i.e. the taxpayer) pay them for their CDO's?

[iridium53]

Thank you.

Congratulations.

[Carolab]

You didn't read the article, did you?

"Signature and Iberiabank had said they wanted to repay to escape limits associated with accepting the aid. The Federal Reserve has urged banks receiving bailout funds to reconsider dividends, and President Barack Obama’s administration has limited bonuses for senior executives and the next 20 most highly paid employees at companies receiving more than $500 million in TARP funds."

[themodernleader]

The five banks that will bring this nation down are the five largest with concentrated hegemony. They also have over 95% of the 100 trillions of derivatives that are losing these banks billions every quarter. It is an act of treason for the Administration to even get close to any obligation to their self inflicted, mortal sounds. Trying to save any of them will pull our nation down to destruction. Facts are facts. Reality is reality. Great leadership does not deny facts and reality but faces them forthrightly and honestly.

[EdWhite1]

If the owners and/or board was stupid enough to agree to a contract to pay these guys outrageous sums of money - well it just shows how stupid the board and owners were and how cunning the CEOs are. If you could make 5 times your salary via good contract negotiation are you saying you'd turn it down and instead take a lower salary? Yah, right - NOT.

[All in All]

Well once they fully give the money back "Good for them".

Honestly.. I hope that their banks prosper!

[Carolab]

You didn't read the article either:

Signature and Iberiabank had said they wanted to repay to escape limits associated with accepting the aid. The Federal Reserve has urged banks receiving bailout funds to reconsider dividends, and President Barack Obama’s administration has limited bonuses for senior executives and the next 20 most highly paid employees at companies receiving more than $500 million in TARP funds.

[All in All]

I understood the article, Despite their greed & foolishness I still hope that Their banks do well.