TARP Funds To Destroy Small Banks Next
The Safecracker is in your little banks, cracking your safes. That is, Tim "The Safecracker" Geithner has apparently greenlighted the stampede of smaller banks that heretofore have unfairly been unable to avail themselves of sufficient government scrutiny and micromanagement. The changes will allow smaller institutions significant access to performance excuses and shareholder sympathy come quarterly report time and provide significant political cover for dismal results and the departure of senior talent that was edging out the door already.
Banks with assets of less than $500 million will be able to apply for capital injections from the Treasury's financial rescue package, Treasury Secretary Timothy Geithner told a gathering of community bankers on Wednesday. Treasury has roughly $109.6 billion in funds left in its bank bailout package. However, Geithner said he expects to use funds repaid from large investment banks, in part, to pay for the new capital injections for smaller public and private community banks.
Asked about the prospects of TARP involvement, one regional bank CEO quipped "Why should regulatory uncertainty, contempt of Congress and political risk be just for the big guys in New York?"
Geithner: Small banks can apply for TARP funds [Marketwatch]
