Okay, if anyone out there knows how I can personally become a bank I’d like the information. It appears that the White House will likely announce the auto bailout tomorrow ( Bloomberg). Here is the catch, they will likely not bailout the auto makers, they will bail out the credit arms. Given that each of these companies own a lender, who is basically a bank, they can get TARP funds.
I had this discussion with a few folks at the office a week ago. My take was that if the Congress said ‘No‘, then the treasury would back door this through GMAC and Chrysler Financial. God forbid we allow the Congress to make a financial decision – that is there constitutional charge if I’m not mistaken. GM isn’t bankrupt yet, and I’m sure they could keep hobbling around for a while without this backdoor cash injection from bailout Hank.
Let me tell you, these guys are all asking for billions, the bank of Barr’s would only need a few million and we’d be able to mop things up and create an extremely viable long term business model. We are happy to lend money to credit worthy folks and would be happy to provide housing for those less fortunate. For that matter, the Bank of Barr would be happy to take that TARP money and use it to keep folks in there homes. I guess, with all of that stuff, I’ll up my request…. Maybe 1 billion would be nice… however, I’m sure I could talk Megan into only taking 750 million.
Hank, were can I fill out the application. I just aced my Accounting class at Kellogg so I’m sure I can keep reasonable books, heck I even know what mark-to-market is!
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