After TARP Repayments, Banks Are Now 'Free To Fail Again': Steven Pearlstein

washingtonpost.com:

As far as I can tell, top administration officials are fixated on voter rage over bank bailouts and the resulting hit to the president's poll ratings. So they're looking for any way to show that the economy is improving and that the government will not only get its bailout money back, but earn a profit besides.
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By rushing to cash in their chips, however, the administration not only gave up political leverage and additional profit, but took the risk that one or more of the banks may find that it can't make it on its own.

Read the whole story: washingtonpost.com

Comments

[bola47]

11:28 PM on 12/17/2009

at my age i will not be around to see it, but if the govt. bails out another financial criminal enterprise i am afraid there will be a revolution in this country.

[sonofsamphm1c]

04:49 AM on 12/18/2009

If it's a systemic crisis, the revolution will come if they don't save the financial institutions.

[invest in jobs]

04:43 PM on 12/17/2009

Americans are more pessimistic now according to a recent study today about the economy then they were in jan 2009- even before all the greenshoots BS.
hat tip to; http://financeopinionss.blogspot.com

The working classes have seen declining real incomes for many years – something that was hidden due to excessive bank credit. We are running deficits equal to 15% of our GDP just to keep job losses from becoming worse.

[lvdragonlady]

12:56 PM on 12/17/2009

Americans want to see proof that this money was paid back.
WE are NOT taking anyone's word for it.

SHOW US THE PROOF!!!!!!

[invest in jobs]

12:30 PM on 12/17/2009

Bernanke & the employees at Goldman are a bunch of rat basta4rds
good articles; http://financeopinionss.blogspot.com

It's despicable what's going on

[drkazmd65]

11:41 AM on 12/17/2009

Next time,... I vote we let them fail,...

[US1st2009]

10:11 AM on 12/17/2009

Let
The
Zombie
Banks
Fail

Stop pouring money down the gaping, drooling maws of these dead beasts

[lvdragonlady]

02:51 PM on 12/16/2009

Next time America will let them fail. They are so desperate to give out big pay checks and bonuses then they are on their own next time around because they did not learn a flippin thing and America's understanding will be well learned.

[dfranz]

01:41 PM on 12/16/2009

Reinstate the Glass Stegall act. Make banks decide whether they are banks or investment institutions.

Investment banks take risks. If they fail, they fail. Banks holding individual accounts and insured by the FDIC are not likely to fail as their business is not that risky.

Phil Gramm was wrong and his ecconomic theory is what got us started down this road.

[DebtNavigation]

10:01 AM on 12/16/2009

If Gramm/Leach/Bliley puts the Glass Steagall restrictions back these banks absolutely WILL fail (which is not to say we shouldn't do it, I'm just noting the consequences in advance). Even if we don't do that, the only moneymaking parts are their trading arms, which are taking insane risks to make the money. And the risk is concentrated in about six banks, which are all guaranteeing each other ... a bit like termites holding hands to keep a thoroughly-gnawed house from falling down. The early payback was of course to allow for year-end bonuses, nobody cares about next year except that they are already working on their "dog-ate-my-homework" excuses for why they need to be bailed out again. Don't let your congressperson say yes!

[Jimboy17]

10:05 AM on 12/16/2009

Too big to fail, with a side of taxpayer bailout is simply a really inefficient form of nationalisation in which the profits end up in the hands of 1-5% instead of the people.

[bola47]

11:30 PM on 12/17/2009

no profits for the people. the irs just gave citigroup another $38bn in the form of a tax credit. this s**t has got to stop.

[Jazz88105]

09:28 AM on 12/16/2009

they may be free to fail but we are free to let them fail no more help for the banks they screw up again we flush em'.

[DebtNavigation]

10:03 AM on 12/16/2009

The second word in my post above Jazz88105's post should have been "repealing" ;->