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Politics : The Obama - Clinton Disaster -- Ignore unavailable to you. Want to Upgrade?

To: longnshort who wrote (34639)	7/29/2010 3:35:20 PM
From: DuckTapeSunroof	Respond to of 103300

So... you know nothing about the bill's provisions? news.google.com The bill would allow banks with $1 billion or less in assets to borrow from the government up to 5% of their risk-weighted assets (Banks with between $1 billion and $10 billion could borrow 3%). These smaller financial institutions would receive investments that must be used for small business lending. The program would be administered by the Treasury Department. Based on the program, a bank with $100 million in assets could borrow $5 million in funds from the government while an institution with $1 billion in assets could take on $50 million to fund small business loans. Moving away from TARP The loans would come with a 5% dividend on preferred stock issued to Treasury, which could be reduced by 1% -- to as low as 1% -- for each 2.5% increase in small business lending conducted by the bank. The roughly 500 community banks that have already accepted emergency funds - the so-called Troubled Asset Relief Program funds - could convert over to this program. [Any banks which do not lend the money out would see the dividend on that preferred stock rise to 7%....] "Our view continues to be that this is a great deal for any of the publicly traded banks that still have TARP as they can swap their TARP for the new capital," said Jaret Seiberg, analyst at Concept Capital in Washington.