The Stimulus Plan: When It Comes To Banks

Are banks that are really receiving federal funds spending that money, our taxpaying dollars, foolishly? The stimulus plan was designed to allow banks to receive federal funds in order to keep banks from failing by having to file for bankrupcy or losing billions of dollars therefore having to sale their company. If banks receive government money the government should keep account of where the money is going. The money that the banks are spending should be open for the public to view. We as americans should have a say so in how theses banks are spending there money. Then I feel that if this is done that united states can progress and escape this economic crisis if banks tell the truth.In 2008, President Bush's adminstration had designed a stimulus plan that would allow the economy to make money as well as help banks have enough money to cover the amount of debt that was gained due to loaning money to individuals that could not pay the money back.By the end of 2008, J.P. Morgan Chase Co. and Bank of America were among 116 banks that received govenrnment bail out money.

In December 2008 Iowa had reported that seven banks receive government funding. These banks included the Heartland Financial USA INcorporation in Dubuque which received $81.7 million; the West Bancorporation Incorporation in West Des Moines which received $36 million; North Central Bancshares in Fort Dodge had received $16 million; the QCR Holdings Inc. in Moline Ill. Had received $38.24 million Green Circle Investments Inc. in Clives had received $2.4 million,and the National Bancshares in Bettendorf, received $e4.6 million. If just in Iowa alone received over $200 million of taxpaid federal funds, where did the money go? How was all that money used?

It is ok for banks to receive federal funding if and only if the banks use and spend the money appropriately. A bank or company should not take the government's money simply because it was offered or given to them. If the bank or company does not really need the money they should simply not take it vs. taking tax-payers hard earned money and spending it foolishly to then give the money back.

Northern Trust Bank plans to repay $1.6 billion in federal bailout money as quickly as possible, after Northern Trust Bank was criticized for throwing lavish parties for its employees as well as clients in Los Angeles, California. Northen Trust Bank is also accuesed fo sponsoring a PGA golf event using government bailout money. The CEO Predrick Waddell of Northern Trust Bank denies throwing these parties for clients and employees and that Northen Trust Bank did not spend the goverenment funds accordingly. I wonder if this is so why does Mr. Waddell feel that his Bank should give the money back so urgently?

If some type of regulations were set in place, the banks and companies that does not need bailout money will not get it. Our tax payers money should go where it is needed.

Continue My Bail Out Reaserch

Continuing my research on the topic, "Bail out for banks", I was able to find interesting articles related to my topic. The information that I had gathered made me really focus and pay attention to what is going on. One of the first articles that I was able to find was in titled, "Northern Trust Pledges to Quickly Repay Bailout Money, Following Criticism Over Parties." at, <http://www.foxnews.com/politics/2009/03/02/northern-trust-pledges-quickly-repay-bailout-money-following-criticism-parties/>.

This articles speaks on how the U.S. Rep. Barney Frank criticized Northern Trust after they had report last week that basically instead of the banks spending their money wisely, they felt that, "The bank threw lavish parties and dinners for clients and employees in Los Angeles." Northern Trust bank has stated that they plan to pay back the $1.6 billion in federal bailout money that they had received as soon as they can because of the criticism of how they were claimed to have been spending the bail-out money. CEO Frederick Waddell had written a letter sending it to the members of the House Financial Services Committee stating that, "The company takes its responsibility "seriously" and remains "committed to doing the right thing for all constituencies."

When Waddell responded to the criticism, this is what he had to say, "Northern Trust has engaged our regulators with the goal of repaying (the government loan) as quickly as prudently possible." I feel that if Waddell is so quick to repay the money that means that his company is taking resonsibility for what they had did. Was their any wrong doing. I and if there was should the money be repaid? I think so because the money that was given to then was not only the government's money, it belonged to all the tax payers.


Although Waddell had claimed that the company did not use any of the bailout money for the parties one party imparticular, as a sponsorship for a PGA event, and defended it as an charitable aspects of the sponsorship raising more than $50 million for charity. Financial Services Committee Chairman Barney Frank, and other members, wrote Waddell, "demanding the company "immediately return" to the government the equivalent of what they "frittered away on these lavish events."" "Federal taxpayers should not and will not stand for such abuses, and we will insist that any future Treasury support for Northern Trust be conditioned on a thorough reform of your company's policies and practices," they wrote." The taxpayers are not responsible for giving money to companies that does not spend it wisely. Also I feel like we (the taxpayers) are being abuse and taken advantage of. The money should be given back to the American people where it belongs.

In a related article,

"American International Group Inc.examines the economic apocalypse that would follow if A.I.G. failed."

Me and Listservs

Me trying to find listervs was kind of difficult, because the listservs that I searched for was not related to my topic. Most of the listservs that I had came across were mostly school or college oriented or they had dealt with medical or war information. One of the listserv that I had subscribed to was a government listserv that focuses on the activities or situations that impact the government. The listserv also sends me information like current events such as the plain crash that occurred a few days ago, the new stimulus bill that was signed by our new president Obama, and

I did happen to gather some information that might relate to my topic. Here's what I had found:

Dear IRE and IRE Plus. I'm getting sick of defending the SEC. My defense has been based on how wonderful they prepare for, and execute, cases in court. Are they almost completely incapable of defending themselves? Why have they not been jumping up and down in congressional and public statements about how the financial ratings companies were filing false ratings? Why have there been no indictments of anyone in the financial ratings mob? Does the SEC understand that mischievous and devious attorneys can use ratings to support really bad actions by their clients?
Finally, where are the journalistic ethics in publishing incredibly misleading and false press releases? We need to see discussion about the ethics of publishing misleading financial data while making thousands of dollars publishing foreclosure notices. And the foreclosures are increasing here.
Is anyone on the list examining SEC failure to investigate the financial ratings companies? Is anyone investigating or setting up a database of the ratings companies and they ratings they gave to Freddie Mac, et al?
Dwight Hines
IndyMedia
St. Augustine, Florida
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Dear SEC Enforcement:Look, we're on a one-legged economic stool here in St. Augustine, Florida, and see the problems that the Financial Ratings Companies are still contributing to our suffering economy. Look, everyone is going to continue to attack the SEC until you point out loudly and specifically how the ratings companies made bundles of money from lying about the financial stability of the companies. Where has Fitch been for the past three years and why have they not been investigated, along with the other financial ratings organizations?Yes, The St. Augustine Record today, February 11, 2009, page 11A, printed a press release from Fitch, or a press release the City of St. Augustine wrote, stating that the City was given high marks by Fitch of New York for "its strong financial operations." Oh my, is this the same ratings firm that said nothing bad about Freddie and Fannie Mack -- and not a bad word about any other bank or investment company or insurance company that was running on fumes for years? Yes, indeedy, and such statements like were quoted in the newspaper " a narrow economy based on tourism." is not considered a liability. If you haven't noticed, tourism is down in St. Augustine, and going downer.I'm no longer surprised to hear that the St. Augustine Record (owned by Morris Communications) is in bankruptcy. You'd think that whoever is responsible for putting news releases in the news section would also be reading the front pages for the past year.I understand that media can not suffer for publishing such misleading information as this press release, but isn't there a moral obligation to tell the readers about the incomplete and thus bogus nature of the press release?What I want to know is when Treasury and SEC are going to get a handle on these ratings companies that helped in big ways to get us into the current financial mess we're in now.

The upcoming paper

The hardest part on our upcoming project is that the sites that I do seem to find is often so long that it takes a long time for me to narrow down all of the information. Also I find it kind of difficult having to compare and tie the articles together. So far I think that I have fount almost enought sites to where I can form like eight more paragraphys but I still feel like I am stuck. That mean that I maybe need to seek help and insite.
I also might need to use more search engines and try to mix things up by using other peoples blogs to make the paper more interesting and exciting. I am going to continue to work harder on it so that it will be one of the best papers that I have turned in todate.

My First Day

I thought that my first day in the class that I am in would be boring but it has really surprised me. It is actually interesting. I am actually learning something and I cant even believe that. I should have known that every thing would be ok because my teacher is really cool. The way that he teaches he makes it fun and interesting. I never knew that I had an intrest in journalism because I dont like to type but I have fount that journalism is more than that, I can talk and speak my mind and that is something that I love to do talk!

The color of money

What do you think of when you hear the term "The Color of Money"? One might come up with the simple color of their dollar bill. The Color of Money is actually the title of an article about an investigation that one journalist by the name of Bill Dedman had finaly had completed in 1989 after about eight year of reseach and information gathering. Without the use of computers he would not have been able to do his research. Computers helped Dedman to find the information that he had needed in order to study facts and compare numbers and statistics.
One of the articles, Atlanta blacks losing in home loans scramble: Banks favor white areas by 5-1 margin, gives you an indepth look at Dedmans' findings. Inclosed in Dedmans' article was a detailed analyas on Atlanta's banks and savings and loan institutions, would give loan to the poor white neighborhoods in Atlanta, but they would not let the middle-class or upper scaled black neighborhoods receive any loans.
I felt that the article is speaking out on what many african americans have felt on the loan situation and this aritcle say what many banks dont want to say that why this article is so news worthy. I feel that nothing else could have been done in order to improve this paper because I feel that with the Freedom of Information Act, Dedman had enough information that he needed in order to clearly record and post his findings.