TARP's Big Bank Recipients Taking More Risks, Lending Less Than Non-TARP Banks, Report Finds

Quicklink submitted by Amanda Lang     Permalink
Related Topic(s): ; ; ; ; , Add Tags

View Ratings | Rate It

opednews.com Headlined to None 3/8/12

Become a Fan
  (9 fans)


At www.huffingtonpost.com

The big banks that critics claim caused the financial crisis may have gotten bailed out, but they apparently haven't learned their lesson. Large banks that got government bailouts through the Troubled Asset Relief Program (TARP) now are taking more risks than banks that didn't get taxpayer money, according to a working paper from the Federal Reserve. The findings call into question one of the government's main justifications for TARP: that propping up large banks would stabilize a financial system at the brink and keep credit flowing. Instead, it seems that big banks that received the bailout funds -- many after pressure from government officials -- have been lending less than those that didn't get the money, according to the Fed. Furthermore, the loans that the bailed-out banks are making are riskier than those of their not-bailed out counterparts.

Read the rest of the story HERE:

At www.huffingtonpost.com


 

Comments

The time limit for entering new comments on this Quicklink has expired.

This limit can be removed. Our paid membership program is designed to give you many benefits, such as removing this time limit. To learn more, please click here.

Comments: Expand   Shrink   Hide  
No comments