NEVER TOLERATE TYRANNY!....Conservative voices from the GRASSROOTS.

Remember the T A R P bailout??? And without it, how they told us we would have another 30s era depression???

Guess what??? It was just another BIG government BOONDOGGLE. Banks continue to fail and now we don't know who got the (B)illions of taxpayer dollars.

Bailed Out Banks on Brink of Bankruptcy — Again

Tuesday, 28 Dec 2010 09:15 AM

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By Forrest Jones

About 100 banks bailed out by the government are teetering on the brink
of bankruptcy again, The Wall Street Journal reports.

Based on a review of third-quarter results, 98 banks were battling

weakening capital levels, mounting bad loans and heat from regulators,

up from 86 in similar trouble in the second quarter.

The banks in question took more than $4.2 billion from the Treasury

Department under the Troubled Asset Relief Program (TARP), which was

created for healthy banks only.

"The depth of today's problems for some of the institutions, however,

suggests that a number of them were in parlous shape from the

beginning," The Wall Street Journal says.

Seven TARP recipients have gone under already, taking more than $2.7 billion in TARP funds with them.

Treasury Department officials recognize the trouble.

"We certainly understand and recognize that some of the smaller

institutions are experiencing stress," David Miller, chief investment

officer at the Treasury Department's Office of Financial Stability,

which runs TARP, tells the newspaper.

The Obama administration says it will keep a closer watch on banks that

received TARP money but are failing to pay dividends back to the

Treasury Department, a requirement for receiving the bailout money.

Some 132 such banks, community lenders mainly, have failed to make at

least one dividend payment to the government as of the third quarter of

2010.

While big banks are paying back bailout money, the failure of little

banks to do so reflects poor planning by the government, Linus Wilson,

an assistant professor of finance at the University of Louisiana at

Lafayette, tells The Washington Post.

"It just shows the weakness of the government's selection process and the weakness of the banking sector in general."