Word: saying
(lookup in dictionary)
(lookup stats)
Dates: all
Sort By: most recent first
(reverse)
...What's not so clear is whether repaying TARP will turn out to be beneficial for investors. Analysts say getting out of TARP could be costly. Indeed, some worry that banks are putting their desire to rid themselves of government intervention ahead of their firms' bottom lines...
...government funds. TARP-funded banks have to adhere to compensation rules that limit what the firms can pay their top executives. What's more, banks that received government assistance have put off buying private jets or remodeling offices so as not to appear irresponsible with taxpayer money. Industry insiders say that behind the scenes government regulators have also limited the risks that TARP-funded banks can take. (See the top 10 worst business deals of last year...
...warrants they issued to the government in order to receive TARP funds. David Hendler, an analyst at CreditSights, estimates that it would cost JPMorgan nearly $2.6 billion to buy back their warrants from the government. "Banks may have to spend substantial sums to pay back their TARP warrants," says Hendler. Proponents of the banks paying back the government say the higher borrowing costs will only be temporary. As the market improves, banks will be able to issue bonds on their own at lower rates. Indeed, so-called bank credit spreads - the extra costs of borrowing - have already begun to fall...
...Still, the high costs of being TARP-free are causing some banks to say that for the time being they are better off with the government funding than without it. PNC Financial's chief executive Jim Rohr recently told Bloomberg that his bank, which got $7.6 billion in TARP funds, is planning on taking its time to repay the government. Doing anything else, he said, "would be punitive to shareholders...
Pick your economic metaphors carefully. A few months ago, a close adviser to Britain's Prime Minister was pilloried by her fellow politicians for saying, "I am seeing a few green shoots, but it's a little bit too early to say exactly how they'd grow." Seems some people thought that was an insensitive thing to say on a day when a raft of U.K. companies announced layoffs. After all, seeing "green shoots" means you think the economy is doing pretty well, right? Or does...