Wednesday, February 11, 2009

Bank bailout

I'm probably just naive and dangerously uninformed, but I can't help wishing we'd stop TARP II in its tracks and let all the banks fail who are at risk.

I'm bolstered by this WaPo story that describes a little bank that did things right, missed out on big returns on risky investments, and now is not in need of bailing out (but does see a way to make good use of bailout money):

Citizens [a bank] is among the stronger and more conservative banks in the Charlotte market. Despite setting aside $3.2 million last year for expected loan losses, the bank managed to post a profit of $3.1 million, down from $5.7 million the year before. Citizens never got into subprime lending or 100 percent loans, and for its caution lost a lot of business during the go-go years. Now, however, its reward is that its nonperforming loans are less than half of 1 percent of all its loans.


Scooter said...

I'm with you.

Scooter said...

I used to represent the FSLIC duing the S&S failures. We'd get through this, too.

Stephanie said...

Are there small or not-in-trouble banks speaking up and saying, "No bailout. Let we strong survive"?

Scooter said...

I'm not sure they are calling for no bailout but I've heard lots brag in ads that the don't need no stinkin bailout.

They are likely drooling over the chance to pick up the non-troubled assets.