Penalites for banks if they repay loans

[chestnut]

Did anyone catch the story about the stated if the banks that took bail out money, pay it back and then months later suffer a loss, they can be fined and penalized?

Why in the world does that make any sense to anyone?

the one in Chicaga, the one who holds Obama's mortgage wants to pay it back. but they are afraid if something goes bad in the future and they returned the money, they could be in hot water with the feds.

Strange Story. Anyone else hear about this?

 

[Pandora]

It looks to me like Obama wants banks to be under his thumb, kind of like people

 

[BigRob]

Did anyone catch the story about the stated if the banks that took bail out money, pay it back and then months later suffer a loss, they can be fined and penalized?

Why in the world does that make any sense to anyone?

the one in Chicaga, the one who holds Obama's mortgage wants to pay it back. but they are afraid if something goes bad in the future and they returned the money, they could be in hot water with the feds.

Strange Story. Anyone else hear about this?

I caught it. Basically the shareholders can sue on the idea that the banks are intentionally driving their share price down by repaying the bailout money. The shareholders would actually have a case on this one.

 

[chestnut]

It doesn't make sense. The banks have little control over the future, and most would not havea reason to intentionally drive price down. The bankers themselves would lose money..and have nothing to gain,

so I still don't understand the reason for the strings for the bailout money being paid back.

 

[BigRob]

It doesn't make sense. The banks have little control over the future, and most would not havea reason to intentionally drive price down. The bankers themselves would lose money..and have nothing to gain,

so I still don't understand the reason for the strings for the bailout money being paid back.

I don't think it was any new string that was added with the bailout, as I understand it, it is simply normal stockholder recourse if a company is being driven into the ground by management.

 

[Bunz]

I don't think it was any new string that was added with the bailout, as I understand it, it is simply normal stockholder recourse if a company is being driven into the ground by management.

I think you are likely correct, but this also reminds me of a personal loan I took for some equipment on my boat. I had to pay penalties for paying it off early in one lump sum!

They wanted me to make monthly payments over a few years on it. But because of the nature of fishing, I had a good season and payed the entire 17000 when I got payed from the processor. They wanted to milk me for more interest over the period of the loan.