American banks have used Tarp money to purchase rivals
A new scandal is on the American economic and policy scene, notes the Financial Times.
Some banks that have received aid under the financial support for Tarp (Troubled Asset Relief Program, amounting to 700 billion U.S. dollars) used the money to buy their competitors.
This is one of the conclusions of the report prepared by GIS-Tarp, official evaluator of the program. Generally, SIG-TARPR data indicates that 360 of the recipient banks, 83% were used, however, funds to support the lending, 43% - to increase their equity holdings, 31% - for investments, 14% - for the payment flow, while 4% have used to make purchases from other banks.
Although GIS-Tarp shows report as an instrument to ensure transparency of government to support the banking sector, the signs of question on how they are using the money left. These questions will persist, Financial Times notes, as long as the Treasury Department will continue to refuse access to detailed data on each bank separately.
“It is impossible to say how the money of the Tarp was used in a particular loan, a certain investment or of a certain acquisition “indicate in the report, Herb Allison, chief of Tarp program.
