TARP Payback: Banks, Regulators Make "Deal with the Devil," Whalen Says

Right on. There are negative aspects of both capitalism and socialism, but pick one horse and ride it.

Chris Whalen is a real deal. His number crunching on banks is as good as I have seen for a long while. Numbers don't lie, ladies and gentlemen. Confidence without substance will not fly high due to the sheer law of gravity. I agree, banks will have extreme hard time to convince the regulators and investors, in the Q3 and Q4 when the real losses begin to overwhelm the "little" spread and the little capitals.

Good interview. Keep it coming. There is too much rosy outlooks right now and it just does not make sense. All they need is another round of mortgage failures and the banks are toast.

A bank receiving TARP funds = bad. No, a bank receiving TARP funds = good. Said bank paying back TARP funds = good. Oh wait, that same bank paying back TARP funds = bad. WTF? Seems to me that paying thise $ back is to get the gov't off their asses. Which can only be a good thing. If the banks continue to have issues, they deal with it withOUT big brother looming over them. I'd rather fail on my own that with the government interdiction being my new master.

Banks issue more shares. Dilute the shareholder base. Stock price goes up. Banks still insolvent based upon outstanding bad loans. Who bought these news shares ? On what reasoning ? What am I missing ? There is a huge disconnect between reality and what is transpiring with these banks.

So a big tidal wave of toxic assests,credit defaults & foreclosures,etc,etc is coming.Unemployment still rising,be prepared folks.White House saying things are getting better & better.The "spin" on all the good news,spinning so much like a Tornado.Amazing!!

I want everyone to be "politically correct"! I'm a Milato, single, divorced, athiest (recently converted to Muslim though), raised in a divorced family, low-income, handi-capped (work related), pro-choice (who "chooses" not to choose), recieving AARP and senior citizen discount and with some education (does it matter if I didn't go to an Ivy League school?) male (oh no!) who wants his voice heard $#@%! I'll sue!!!!!

Greenshoots are thriving thanks to our heroes in Washington. The banks and Wall Street are saved and making money off of the masses. Time to get a home equity loan and buy a Hummer H2. The stock market is booming. Unemployment and housing don't matter because it doesn't affect the banks or Wall Street.

Who wants the Government dictating your operations and pay scales. Look how well the Government operates, what a model of fiscal resposiblility.

Ah yes, spending reduction is only the first goal to attain by the people's new social change, next up is debt reduction, then debt-free, then sustaining debt-free until they cannot stand their frugal selves anymore. I imagine this cycle will last about 7 more years.

Interest rates as well as mortgage rates are exploding to the upside and that ought to kill off any buyers wanting new mortgages. So the bankers living in fantasyland will soon get a dose of reality. Why did we lend money to those banks anyway? That is like lending money to Enron with all the crooks still employed.

There you go ....... The greedy CEO's don't cARE ABOUT THE INSTITUTIONS THIS IS SIMPLY ABOUT finding a way to lining their pockets AGAIN even at the cost of the Banks.

Our whole economy is now in a "fantasy land" !! Government is spending "money we don't have". Printing money, "we don't have". creating jobs, "that will be paid for with future taxes" bankrupting our future and our children to "future debt". "Voodoo Economics" -REVISITED.!! Vote these Incumbant Bums Out of Office !! That "Great Sucking Sound" we hear, is our taxes sucked,out of our pocketsand wallets, and into the greed of Congress,Megabanks,WallStreet,and Lazy Government make work projects and to their union cronies !!

They take $700 billion and give back $68 billion and this is good news to Wall Street??? HUH? I am living in the twilight zone. Banks run the show all right, since 1913. But last year, we were called "conspiracy theorists" and "kooks". The problem is we don't have detailed information what is really happening. We do know, however, they (banks) have engineered the depression and gained more power from it. We know they gain the most from the war on terror, the war on drugs, and the black market, i.e. weapon sales, human trafficking, and corporate fraud. The stock market is completely rigged...Everyone should pull out, withdrawal most portions of deposits from banks, and use cash to make purchases. As a consumer, you'll get better deals using cash and less deposits means you are stripping power away from the cunning bankers. And finally, consumers can give yourselves an immediate raise by stop paying the income tax.

You're in trouble you have to borrow this money. But you can't pay it back. Oh now we've done a stress test and see that you need more money. We can't loan you anymore but we'll just exchange all that money we loaned you for equity, say 51% of your common stock. Oh you want to pay it back rather than be nationalized? Sorry, we can't allow that. Once you pay the money back we'll lose that nice stranglehold we had over you. How are we supposed to nationalize all the vital industries if they won't cooperate?

They take $700 billion and give back $68 billion and this is good news to Wall Street??? HUH? I am living in the twilight zone. Banks run the show all right, since 1913. But last year, we were called "conspiracy theorists" and "kooks". The problem is we don't have detailed information what is really happening. We do know, however, they (banks) have engineered the depression and gained more power from it. We know they gain the most from the war on terror, the war on drugs, and the black market, i.e. weapon sales, human trafficking, and corporate fraud. The stock market is completely rigged...Everyone should pull out, withdrawal most portions of deposits from banks, and use cash to make purchases. As a consumer, you'll get better deals using cash and less deposits means you are stripping power away from the cunning bankers. And finally, consumers can give yourselves an immediate raise by stop paying the income tax. Bye the way, the Fed is a private bank that controls the government. They are the puppet masters.

"What this country needs is a good old-fashioned REVOLUTION!", as noted by Powers Boothe to Nick Nolte in the 1987 "Extreme Prejudice". And after that revolution, "The first thing we do is KILL all the lawyers!", as Shakespeare noted over 400 years ago in his "Henry VI"! In both cases, truer words were never spoken!

TARP payback is a good thing. The government not allowing payback is a bad thing. I can't think of any good aspect of socialism and plenty of good aspects of capitalism.

TARP should have never happened. Let the good succeed, and let the bad suck it.

What kind of spininformation spewing self serving news hawking "pinhead" are you? The shares should have been transfered to the taxpayers, the gov't has the responsibility to regulate and audit and it dropped the ball. We should have business people running the gov't not politicians running major corporations. The president isn't intrested in running the banks and auto companies so what should it matter. Kind of puts a dent in the socialist M.O. doesn't it. Let's reflect on the gov't performance, IRS, health care, congress, defense (poor spending followed by questionable actions). Two thoughts. One there is no third entity called the gov't, there are just people we elect to represent us. People don't sue the gov't they sue us. People don't work for the gov't they work for taxpayers. The gov't spends our money not their money. Spending tens of billions to delay GM going bankrupt served no purpose other than to arrange the gov't and union ownership now in place. Taxpayer money spent to self serve the political agenda of a few. Remember Politicians work for us. Who's agenda is this bozo working? Not a tough question, his, this is a self serving article to generate news worthyness for himself.