Bailout benefits which banks?

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 probably the most. Since the public funded it, they have a right to know who they funded. Article resource – Which banks benefited from the bailout by Personal Money Store.

Wall Street received a huge block of bailout money

According to CNN Money, there were 707 banks that participated in the Troubled Asset Relief Program, or TARP. $ 40 billion was split between 690 of them. The average between them all is $ 57,971, 014.49 apiece. That means the bulk of bailout funds went to 17 of the largest financial institutions, 13 of which have already repaid the Treasury. JP Morgan chase posted $ 4.8 billion in second quarter income, which was announced in the Market Watch, showing there is profitability already.

Main street left struggling

$ 15 billion of the $ 40 billion was lent to smaller banks within the CPP, or Capital Purchase Program, according to the CNN article. Main street banks weren’t definitively left within the lurch, but the banks that were too big to fail certainly weren’t allowed to. Debts for many who received CPP loans have only been paid by 10 percent so far. At least one payment was missed by 15 percent of banks that nevertheless owe CPP loans.

Feed the wolves to conserve the sheep

Wall Street is nevertheless 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. What will happen when main street banks go under? Will our list of institutions be limited and costs us $ 700 billion to look at 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