Wall Street is kept in mind when designing the financial reform bill on Obama’s desk. The idea is to keep the recession of the last few years from happening again, and to not have to bail out any more banks. However, that brings up the issue of which institutions actually were bailed out, or benefited one of the most. The public should know who was bailed out since they funded.
Wall Street received much of the bailout
According to CNN Money, there were 707 banks that participated in the Troubled Asset Relief Program, or TARP. 690 of these banks split $ 40 billion. The average for those 690 banks is $ 57,971, 014.49 apiece. The government has been paid back by 13 of the 17 institutions that got the majority of the bailout given to them. JP Morgan chase posted $ 4.8 billion in second quarter income, which was announced within the Market Watch, showing there is profitability already.
Struggling main street
Smaller banks within the CPP, Capital Purchase Program, as outlined by the CNN article, received $ 15 billion of the $ 40 billion. Main street banks weren’t definitively left within the lurch, but the banks which were too big to fail certainly weren’t allowed to. Only 10 percent of the smaller banks that received CPP loans have been able to repay their debts already. 15 percent of the small banks that nevertheless owe on CPP loans missed at least one payment.
Feed the wolves to conserve the sheep
Wall Street is still at the heart of the fallout from the financial crash in 2008. It may become normal to have strict standards considering the $ 550 million fine Goldman Sachs just got from the SEC and also the financial reform bill that just passed. If main street banks go under, what will happen? Will we have to choose from a small list of institutions that just cost us $ 700 billion or more to watch over our money?
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CNN Money on TARP
money.cnn.com/2010/07/14/news/economy/Main_Street_banks_TARP/index.htm
CNN on Goldman
money.cnn.com/2010/07/15/news/companies/SEC_goldman/index.htm
Market Watch
marketwatch.com/story/jpmorgan-chase-reports-second-quarter-2010-net-income-of-48-billion-or-109-per-share-on-revenue1-of-256-billion-2010-07-15?reflink=MW_news_stmp
