Banks ponder when to repay the taxpayers

Nov 22, 2009 00:04 EST

By DENNIS LARISON, Business Editor

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Showing 5 most recent comments out of 17 total TalkBack comments about this article
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QUOTE (mam0412 @ Nov 24 2009, 09:30 AM)

That's also not exactly true salty. Some banks have tried to pay back the funds, but were refused for insufficient capital.

I wish my creditors were this generous. "Hey, looks like you're gonna be short $20 this week, we'll defer your payment till next week."
BTW, considering the sums of money involved, I'd be pissed if they refused my payment for one day, let alone weeks. The interest on a daily basis is mind numbing.
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solitary

FLASHBACK:

"The $700 billion that you're hearing about now is not only, I believe, necessary, it is also not nearly enough."

- Glenn Beck 9/22/08
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mnepats52

I hated the bailout, especially to banks, who look to screw the American people anytime they can. They are as much a criminal is as the health insurance industry.

That said, had the bailout not occured, I believe that you and I and the three neighborhoods blocks surrounding us - totaling about 50 people - would be living together in a small room. And I am a very boring person, who does not like a lot of noise. )
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sportsnut1662

QUOTE (solitary @ Nov 23 2009, 02:26 PM)

Can somebody explain this to me? Cause this sounds almost exactly like the way the bail out was paid, by printing money, except in this case, the banks are printing shares instead?

It's a legit transaction. Investor gives cash to company, company issues stock in return. From an accounting standpoint, Investor credits (decreases) cash (an asset) and debits (increases) investments (an asset) - his balance sheet is still balanced. Company debits (increases) cash (an asset) and credits (increases) equity (on liability side) - balance sheet still balanced. Yes, they print a stock certificate to represent the equity the investor now holds in the company (printing expense will be on the income statement), but they have given up that equity to invest in themselves and now owe it to the investor - in exchange for cash.
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mam0412

QUOTE (mam0412 @ Nov 24 2009, 10:30 AM)

That's also not exactly true salty. Some banks have tried to pay back the funds, but were refused for insufficient capital.

Again you make my point. If there were rules, the banks would know exactly when repayment is required. They don't.
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salty

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