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Banks To Frank: We Don't Want Your Stinking Money

Buried amid yesterday's coverage of the president's announcement that 50,000 troops will remain in Iraq and Treasury Secretary Geithner's acquisition of almost half of Citibank was this interesting development, via American Banker:

Bankers are increasingly asking themselves whether taking government funds is a good deal -- and coming up with more reasons not to.
...."The complete spirit of this deal changed," said Blake Chatelain, the president and chief executive of Red River Bancshares Inc. in Alexandria, La. "Every bank's concern was that the public would understand it was for healthy banks to improve the economy. Along the way the entire spirit of the deal changed to, if you are taking the money from the government then you did something wrong and we are going to control you."

The $5.4 billion-asset Iberiabank Corp. in Lafayette, La., is the first banking company in the country to announce it is giving back the money it received from the Treasury.

"We have gotten the message that if you took" government funds "you are open to all kinds of changes to the way you do business," said Daryl G. Byrd, Iberia's CEO. "We don't think that would be good for our shareholders or the community we serve."

You think? I noted on Thursday that financial institutions are becoming increasingly uncomfortable with the unstable and emotional outbursts by Democrat House Financial Services Chairman Barney Frank (D-MA). Yesterday Northern Trust, which honored a two year old contract to sponsor last week's Northern Trust Open, announced that it will pay back the TARP funds rather than operate under the thumb of the House Financial Services dictator.

Democrats in thrall to the Obamessiah phenomenon are over reaching (just as they did in 1993) and the private sector is responding. The consequences of Frank style federal intervention in the financial industry will be wide spread however the outcome is entirely predictable: the banks and institutions that disentangle themselves from TARP the soonest will overwhelm their competitors that remain in TARP.



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Comments (9)

It is a bit amusing that it... (Below threshold)
Harmon:

It is a bit amusing that it took the bankers a while to realize what most of us already knew: there ain't no such thing as free money. Especially if it comes from the government.

It should serve as a lesson... (Below threshold)
John:

It should serve as a lesson to the states taking bailout money.

This is a good sign. A fri... (Below threshold)
TFS:

This is a good sign. A friend of mine told me that she saw a PBS documentary about TARP which disclosed that from the beginning there were banks who did not want TARP money but were forced to take it. Of course, the mainstream media (i.e. CNN, MSNBC, ABC) wouldn't disclose this because they want to make all of these banks and bankers look greedy, thus helping Obama push through his socialist agenda.

Now that business is waking up, maybe individuals will wake up too and realize that there's no such thing as getting something from the government without ultimately enslaving yourself to it.

According to the Obama admi... (Below threshold)
Mac Lorry:

According to the Obama administration's own data, the individuals targeted for hefty income tax increases are in control of most of the jobs in this nation. In the spirit of the Boston tea party, these individuals should resist preserving and creating jobs in this nation until Obama and the democrats make Bush's tax cuts permanent. Going along with being singled out for tax increases only encourages liberals to continue to increase them. It won't be long and the top rate will be back to 70% as it was under Carter.

Forcing democrats to acknowledge that the rich are the ones who risk their own capital to create jobs and companies that drive our economy would put many nails into the coffin of the Obama administration and liberalism in general.

On the other hand,... (Below threshold)
irongrampa:


On the other hand, I wonder if we REALLY need Barney Frank?

Like a fish needs a bicycle... (Below threshold)
JLawson:

Like a fish needs a bicycle, to coin a phrase....

Who does Barack Hussein Oba... (Below threshold)
marc:

Who does Barack Hussein Obama think he's fooling?

This from his weekly radio address.

These steps won't sit well with the special interests and lobbyists who are invested in the old way of doing business. I know they're gearing up for a fight as we speak. My message to them is this: So am I.
Yeah riiiight!

The special interests and lobbists have all wrapped the "things" in hundred dollar bills and are masturbating at the thought of getting a piece of a nearly 4 trillion dollar budget.

You take the King's shillin... (Below threshold)
Mikey NTH:

You take the King's shilling, you do the King's bidding.

That is so obvious you have to wonder about these guys and gals...

"I've altered the deal. Pr... (Below threshold)
the_brain:

"I've altered the deal. Pray I don't alter it any further." - Darth Obama




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