One company was mysteriously missing from the list, General Electric. GE has been regularly protected from the TARP rules. By taking advantage of its ownership of two tiny banks in Utah, GE was able to issue $80 Billion dollars worth of federally backed loans about one out of every four dollars available in the federal loan guarantee program.
And true to being a friend of the President, General Electric didn't have to go through any of the burdens other participants had to go through like the financial stress test. And now it seems they wont have to worry about any those pesky salary/compensation limits so Jeffrey Immelt and the senior management don't have to worry about the 14-18 Million in annual compensation they get with help from Uncle Sam.
As reported by the Washington Post back in June, GE was the number one recipient of the TARP guaranteed loan program, and got many favors from the Obama Government along the way.
General Electric, the world's largest industrial company, has quietly become the biggest beneficiary of one of the government's key rescue programs for banks.Ah its good to be friends with the king.
At the same time, GE has avoided many of the restrictions facing other financial giants getting help from the government.
The company did not initially qualify for the program, under which the government sought to unfreeze credit markets by guaranteeing debt sold by banking firms. But regulators soon loosened the eligibility requirements, in part because of behind-the-scenes appeals from GE.
As a result, GE has joined major banks collectively saving billions of dollars by raising money for their operations at lower interest rates. Public records show that GE Capital, the company's massive financing arm, has issued nearly a quarter of the $340 billion in debt backed by the program, which is known as the Temporary Liquidity Guarantee Program, or TLGP. The government's actions have been "powerful and helpful" to the company, GE chief executive Jeffrey Immelt acknowledged in December.
GE's finance arm is not classified as a bank. Rather, it worked its way into the rescue program by owning two relatively small Utah banking institutions, illustrating how the loopholes in the U.S. regulatory system are manifest in the government's historic intervention in the financial crisis.
.... Unlike other major lenders participating in the debt guarantee program, including Bank of America, Citigroup and J.P. Morgan Chase, GE has never been subject to the Fed's stress tests or its rules for limiting risk. Also unlike firms that have received bailout money in the Troubled Assets Relief Program, or TARP, GE is not subject to restrictions such as limits on executive compensation.
....GE may be better known for light bulbs and home appliances, but GE Capital is one of the world's largest and most diverse financial operations, lending money for commercial real estate, aircraft leasing and credit cards for stores such as Wal-Mart. If GE Capital were classified as a banking company, it would be the nation's seventh largest.The nation's 7th largest bank gets federal aid with out having to submit to the same checks and balances as its competitors. Its top staff does not have to have their compensation restricted like their competition. Is it because of some loophole in the law, or the fact that GE head Jeff Immelt and their news networks are part of the President's propaganda team. Either way there are some questions that need to be answered by the "transparent" Administration.
1 comment:
GE is not a TARP recipient. They did not receive free money in a bag like the banks.
What GE did do is sell FDIC backed commercial paper/bonds and GE is paying a fee to the FDIC for selling these bonds. (They will not longer be issuing them since the program is ending)
The taxpayer is collecting fees from General Electric. Unlike TARP recipients which received free money from the government to pay bonuses to its upper level managers.
You should report your articles with facts if you want to be taken seriously.
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