What is this TARP fund from which the auto industries are getting the support from the feds?
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What is this TARP fund from which the auto industries are getting the support from the feds?
TARP allows the United States Department of the Treasury to purchase illiquid, difficult to value assets from banks and other financial institutions. TARP also allow the Treasury to purchase whole loans and make direct equity investments in banks themselves.
Troubled Assets Relief Program - Wikipedia, the free encyclopedia
It has been tapped into for the auto industries bail out(or loan as they term it)
Thanks for the info!
Hello KBC:
Yeah, the decider decided to give the auto makers a $15 billion loan out of the $750 billion Tarp fund they already gave to the banks... That's .02% of what the banks got.
I don't think anybody should get bailed out, but if this means that the banks are only going to get $735 billion, then I can live with it.
excon
But the banks only have $350 billion(so far)
Poor banks. And then $40 billion isn't even going to the banks themselves but to executive bonuses and pensions. It's that time of year. Turns out there's a loophole that doesn't prevent that.
Big banks owe bosses $40 billion in bonuses, deferred comp: report - Financial WeekQuote:
Big banks owe bosses $40 billion in bonuses, deferred comp
In some cases, debts to bosses exceed pension obligations to entire workforces
October 31, 2008 8:30 AM ET
(Reuters)—Troubled financial giants getting cash infusions from the U.S. Federal Reserve owe their executives more than $40 billion for past years' pay and pensions as of the end of 2007, The Wall Street Journal said in an analysis.
The sums owed are mostly for special executive pensions and deferred compensation, including bonuses, for prior years, said the paper.
The Journal also cited investment banks Goldman Sachs, which owes its executives $11.8 billion; J.P. Morgan Chase, which has a payment of $8.5 billion pending; and Morgan Stanley, which owes between $10 billion and $12 billion to executives.
And if you've heard that can't be paid out
Limits on Executive Pay May Prove Toothless - washingtonpost.com
Quote:
Executive Pay Limits May Prove Toothless
Loophole in Bailout Provision Leaves Enforcement in Doubt
By Amit R. Paley
Washington Post Staff Writer
Monday, December 15, 2008; Page A01
Congress wanted to guarantee that the $700 billion financial bailout would limit the eye-popping pay of Wall Street executives, so lawmakers included a mechanism for reviewing executive compensation and penalizing firms that break the rules.
Quote:
Originally Posted by excon
I'm trying to wrap my mind around why this is a better idea than allowing them to file for bankruptcy protection and work their way out of this. If they can -
Meanwhile auto workers are marching around with signs, refusing any type of pay cut.
I've given up reading/watching the news.
Hello Judy:
In economic terms, I agree with you... But, given the disparity between what the banks got and what the automakers want, it's a good move politically.
excon
Yes,for the outgoing admin.
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