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Northern Trust returns over a billion to the feds


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http://www.tmz.com/2009/07/21/taxpayers-in-tmz-we-trust/

 

We never really thought we could say this ... but TMZ just helped enrich America ... to the tune of nearly $1.6 billion.

 

Remember our story about Northern Trust -- the bank that took federal bailout money and then hosted a lavish golf tourney in L.A. and catered swanky dinners with live entertainment from Sheryl Crowe, Chicago and Earth, Wind & Fire? And all the ladies got Tiffany gift bags. And we got video of the whole thing....

 

Well Barney Frank and other members of Congress were so pissed, Northern Trust agreed to return the money. We checked every week to see if the money was returned ... nothing. Until a few weeks ago!

 

Northern Trust has returned $1,576,000,000 -- that's $1.576 billion returned to the government.

 

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Isn't this one of the banks that didn't need a bailout but was forced to take one by the Feds?

 

That is not entirely true:

 

There are basic standard number ratios which our banking laws demand a bank must maintain in order to be considered solvent and qualify for FDIC, etc.

 

It is not a question whether or not they were forced to take TARP, it is, and was a matter of meeting the minimum deposit to loan ratios, and if not then they had to take TARP funds, or sell out to a stronger bank.

 

The point to stop and consider between TARP and FDIC:

 

With TARP funding bailouts, the Feds have a very good chance [although it is still a gamble] of getting their funds back, and keeping that particular bank healthy and solvent.

 

With FDIC funding bailouts after a bank has failed to meet solvency requirements, and have been unable to find a buyer, then the FDIC pays off the depositors, and gets nothing back. No funds, no healthy bank, no nothing.

 

 

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