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Discussion Starter · #1 ·
BEGIN TRANSCRIPT


RUSH: Now, there's a fascinating story at TwinCities.com, and it is by Nicole Garrison-Sprenger, posted yesterday. It's about the president, the CEO of US Bancorp. His name is Richard Davis. It's about the TARP plan. He says: "There is no 'A, R or P' in the government's Troubled Asset Relief Program. 'It's just troubled,' the 50-year-old CEO said at the Thrivent Financial for Lutherans' Business Leaders Forum. The forum invites executives to discuss how business and their principles intersect."

The CEO of US Bancorp, said that "while government officials marketed the program as a way to entice banks to lend again, TARP actually was designed to give solid banks like US Bancorp some extra cash to buy weaker banks in the system. US Bancorp did just that late last year when it acquired the assets of two failed banks in California, Downey Savings and Loan and PFF Bank & Trust. 'We were told to take it so that we could help Darwin synthesize the weaker banks and acquire those and put them under different leadership,' he said. 'We are not even allowed to mention that. ... We were supposed to say the TARP money was used for lending.'" This CEO told a group of people that TARP was never about credit, it was about Darwinism, it was about giving big banks some money to go buy little banks that were in trouble. The CEO Richard Davis says he's "talking about it now because he and others oppose current and future strings attached to the program. Davis didn't detail those strings, but he said he and some peers intend to voice their opinions to Washington, DC, soon."

Now, don't forget, the CEO of Wells Fargo also said he didn't want the money; they weren't in trouble; they didn't have any bad mortgages out there. He said they were dragged in there and the Treasury secretary gave them 'til five o'clock that day to sign on the TARP, and they weren't getting out of the room until they signed it. Okay, so they give us the money, they tell us to use the money to go buy smaller banks and now they're punishing us for having the capital. He said he "refuses to stand by and let his company become 'collateral damage' in an attempt to nationalize the banks. ... Davis also disclosed that a number of other states and cities have been working hard to lure US Bancorp away from the Twin Cities," but he's not going to leave. He refuses to stand by and let his company become collateral damage. So one of the bank CEOs is out there now and saying this was never about lending, it was never about restocking the credit pile. It was about giving us capital to go buy other banks, and that's exactly what happened. And then remember how mad Congress got at these guys? They got ripped for it! That's what they were told to do by the Treasury secretary. They were called up to explain themselves to Barney Frank, and they couldn't go public with this. They're frustrated as hell. I guess that's why Davis has gone public with it.




END TRANSCRIPT
:eek:
 

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Discussion Starter · #2 ·
Oh and by the way, I do a lot of consulting and design work for Bank of America, who's CEO Ken Lewis told Congress on the Hill hearings that BAC did not need the money or want the money. Ken Lewis knew there would be strings attached. However, they (the banks) were all told that they had no choice as their lives (as in the company operations) would become hell if they refused.

I know this for a fact as I was in meetings with Ken Lewis and others when he was talking about it.

So why does the government want to give billions and billions of dollars to the biggest banks to buy up all the little struggling banks? To make the bigest banks even bigger. Why? So that it would become easier to take ove rthe banking industry and put it under givernment control. Why? If you control the banks and everyone's money, not only do you already tax people to death, but you can then use the money people keep in the banks. You can do whatever the hell you want to do. I am buying gold out the ying right now. That may be why the price keeps going up. I am buying swiss bars by the butt loads. Ah, but where do I keep it, you ask? Not in a U.S. bank. I keep it in a little known privately owned vault. It is expensive, but to me it is worth it.
 

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If the dung hits the air mover guns and ammo will be the popular barter item. Stock up on those too!

Col Maddog :2rifle:
 

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Im glad that someone in the banking business has the balls to stand up to the feds on this. It amazes me what the federal government is trying to do.
 

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There is a substantial element of fact here however it is leavened by a large chunk of bitterness, with Dear Dickie going to see his $8.6 million salary and exercised bonuses capped with a requirement to deliver as opposed to 2008 when he has overseen a 75%+ drop in share price......... ::)
 

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Discussion Starter · #6 ·
There is a substantial element of fact here however it is leavened by a large chunk of bitterness, with Dear Dickie going to see his .6 million salary and exercised bonuses capped with a requirement to deliver as opposed to 2008 when he has overseen a 75%+ drop in share price......... ::)
Nearly everyone has seen a severe drop in their share price. If you know anything about stocks and the market you would understand that sometime stocks fall even when there is no reason they should. Take El Paso corp. I owned their stock last year and their company is a very solid company and with their balance sheet people should own their stock and it should be at $30 instead of $8. Other than the current economic environment, there is no logic as to why the stock is at $8. This company own nearly all the Natural Gas pipelines in North America. The demand for NG has not decreased yet the stock has has fallen like a rock. So do NOT judge a company solely on it's stock price, especially right now. Stock price doesn't tell you anything about a company except how popular it is. Look at Enron. It's stock was great and the company was cooking the books and running it into the ground. So what did the stock price tell you? nothing really!

Get down from your liberal Bush bashing pedestal and do you own damn research instead of reading the mainstream media and the liberal websites like factcheck.org, etc.
 

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The man fucked up, lost money, got paid extortionate amounts of money and when I point out his whining about TARP is partially bitterness about his pay being capped and being actually held responsible and that makes me a Bush bashing liberal?

What planet are you on today?
 

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Get down from your liberal Bush bashing pedestal and do you own damn research instead of reading the mainstream media and the liberal websites like factcheck.org, etc.
Cool your jets, friend.

Anyone quoting Limbaugh doesn't have a whole lot of ammo to open fire on someone else for being biased.

But let's get back to your topic. I'm VERY interested in your comments about the TARP. Every expert I've heard weigh in on it has suggested it's a colossal boondoggle. The CEOs of several participating banks have publicly said that they view the measure as a windfall, to be used for paying down debt and acquiring other businesses. You're saying that was the real purpose of it all along, correct?

Interestingly, according to the figures I've seen, BOA has taken more of the TARP money than anyone else, and has been acquiring some of the most troubled institutions out there -- including Countrywide.

tk
 

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Discussion Starter · #9 ·
I am cool. I'm just tired of people blaming this economy on Bush as if he sat in the Oval office and made policies that predicated this "crisis" These issues plaguing us right now is due to the DoJ under Clinton and Janet Reno being over zealous with the Community Reinvestment Act and strong arming lending institutions into loaning money to those who would not be able to pay it back.

Yes; BAC is and has been buying up smaller companies like Countrywide, MBNA, LaSalle Bank, Merrill Lynch over the last few years. They never needed the money to do this. They were forced to do it and I will tell you this much, Ken Lewis has never stated to the execs why he went back to ask for another 10 billion. It was publicly stated as being for offsetting the huge cost of transitioning Merrill Lynch into the bank and also the amount of bad debt Merrill Lynch carried with it. I personally think there was something else to it. If there was, Ken Lewis isn't saying so. :-\

Actually, the article is being quoted from both TwinCities.com and Rush. I was just showing what Rush said about it as well. The story is from the other site.
 
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