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...Federal Reserve Chairman Ben Bernanke said the recession is probably over. But that hasn't halted the Treasury Department from continuing to dole out billions of dollars to financial firms. The latest installment came two weeks ago, when the Treasury sent nearly $75 million from the Troubled Asset Relief Program (TARP) to five banks. Community Bancshares of Mississippi was the largest recipient, getting $52 million in federal funds. All told, the government has spent nearly $5 billion in rescue funds in the past three months. Many of the recipients have been small banks. (See TIME's special report "The Financial...

Author: /time Magazine | Title: As Economy Improves, Bank Bailouts Persist | 9/23/2009 | See Source »

...together raised more than $1 billion in stock offerings, without the assistance of the government, according to research firm SNL Financial. Some banks have already paid back the money they got from the government with interest. That's raised the question of why the Treasury's signature financial-assistance program is continuing...

Author: /time Magazine | Title: As Economy Improves, Bank Bailouts Persist | 9/23/2009 | See Source »

...There was never a good economic rationale for bailing out smaller banks," says Vincent Reinhart, a fellow at the American Enterprise Institute and a former top Federal Reserve economist. "Extending the program only compounds the mistake." (See 25 people to blame for the financial crisis...

Author: /time Magazine | Title: As Economy Improves, Bank Bailouts Persist | 9/23/2009 | See Source »

...Treasury Department says the TARP funds were never meant to solely prop up failing banks. In fact, officials say one of the criteria for getting funds under the TARP's Capital Purchase Program, in which the government injects money into a bank in return for preferred shares, is proof that a bank could survive on its own. While the Treasury is winding down some of its programs meant to assist the financial sector, it has no plans to end the TARP program early. The Treasury Department says it is still getting new requests from banks for TARP funds. (Small banks...

Author: /time Magazine | Title: As Economy Improves, Bank Bailouts Persist | 9/23/2009 | See Source »

...locals, who for years have witnessed the flow of immigrants, see little hope of success from Tuesday's crackdown. "They can destroy the Jungle, but in a month's time, it will be rebuilt," says Annick Decrinier, a retired teacher in Calais who has volunteered at a lunch program for illegal immigrants since 2001. "I am certain that the way we are dealing with this is not a solution." (Read "Sparks Over Sarkozy's Afghan Plan...

Author: /time Magazine | Title: Will France's Immigration Crackdown Solve Anything? | 9/22/2009 | See Source »

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