View Poll Results: Should banks be allowed to repay TARP funds NOW?

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Thread: Should banks be allowed to repay TARP if they want to?

  1. #21
    Banned Goobieman's Avatar
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    Re: Should banks be allowed to repay TARP if they want to?

    Quote Originally Posted by winston53660 View Post
    Pffft banks have been charging for early repayments for as long as I can remember. Why shouldn't the people who actually back up the money do the same?
    Where does the TARP legislation specify a early-repayment penalty?

  2. #22
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    Re: Should banks be allowed to repay TARP if they want to?

    Quote Originally Posted by winston53660 View Post
    Pffft banks have been charging for early repayments for as long as I can remember. Why shouldn't the people who actually back up the money do the same?
    They're being told they can't pay the money back early, not that it would cost them a fee to do so. Furthermore, there's no penalty in the agreement for early repayment. I know the rest of the Constitution is dead already, but you don't object to ex post facto laws?

  3. #23
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    Re: Should banks be allowed to repay TARP if they want to?

    Quote Originally Posted by celticlord View Post
    When I loan someone money, I'm usually thrilled to get it back ahead of schedule.
    Not if you're a private bank. Banks hate that. It totally screws up their asset to liability portfolio. When they cannot predict their maturity of their assets due to prepayment, they cannot hedge their liabilities to the same maturity dates. You'd be surprised just how many people banks have working on that.
    "If your opponent is of choleric temperament, seek to irritate him." - Sun Tzu

  4. #24
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    Re: Should banks be allowed to repay TARP if they want to?

    It's especially interesting considering TARP was sold to the public on the notion that it was a loan which would be repaid and "the taxpayers" would get the money back.

    Here, some banks are ready to make good on that.

    As I said, there are those who would probably be very happy with the national socialization of the banking system, and as much of the rest of the economy as possible.

    But for those who also claim to believe in freedom and self-determination, shouldn't that be decided by the people, and not just the President and the SecTreas? (Those who needn't be bothered by such notions -- well, we know.)
    2001-2008: Dissent is the highest form of patriotism.
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  5. #25
    Banned Goobieman's Avatar
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    Re: Should banks be allowed to repay TARP if they want to?

    Quote Originally Posted by obvious Child View Post
    Not if you're a private bank. Banks hate that. It totally screws up their asset to liability portfolio.
    .
    Hmm. In the several mortgage agreements I'v signed, none of them had a penalty for early payment. No one I know has ever signed a mortgage contract with an early payment penalty.

    If you're right -- why is that?

  6. #26
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    Re: Should banks be allowed to repay TARP if they want to?

    Quote Originally Posted by obvious Child View Post
    Not if you're a private bank. Banks hate that. It totally screws up their asset to liability portfolio. When they cannot predict their maturity of their assets due to prepayment, they cannot hedge their liabilities to the same maturity dates. You'd be surprised just how many people banks have working on that.
    If that's true, then we've discovered the problem with the banks.

    If I pay off the mortgage, then the bank gets CASH whereas before it had only the promise of CASH. In other words, one asset (mortgage) gets exchanged for a superior asset (CASH). The liability side should not be affected.

    Cash makes no enemies.

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