The list of American corporations accepting bailout money is expanding further into the insurance industry. Prudential Financial Inc. and Hartford Financial Services Group Inc. are among six insurers granted access to U.S. aid as the government moves to shore up an industry battered by investment losses. Hartford won preliminary approval for $3.4 billion in capital from the Treasury's Troubled Asset Relief Program, the Connecticut-based insurer said yesterday in a statement. Prudential, Allstate Corp., Principal Financial Group Inc. and Ameriprise Financial Inc. also are eligible for funds, said Andrew Williams, a spokesman for the Treasury. Lincoln National Corp. said it may receive $2.5 billion.
They join over 580 Financial Institutions who have already taken a bailout, with AIG taking the largest amount.
Bailout list is here: http://bailout.propublica.org/main/list/index
Taking bailout money comes at at a heavy costs. It means corporate CEO's share a seat with the CEO-In-Chief.
As the newly ordained CEO, Obama quickly went to work on "his" banks, restricting compensation. The House Financial Services Committee, led by chairman Barney Frank, approved a measure that would, in some key ways, go beyond the most draconian features of the original AIG bill. The new legislation, the "Pay for Performance Act of 2009," would impose government controls on the pay of all employees, not just top executives, of companies that have received a capital investment from the U.S. government.
Add to that Presidential regulation of credit card interest rates, and a virtual elimination of bonuses, most institutions are squirming to pay back bailout money in favor of self-control. A few did. But that was before government changed the rules making it very hard to do so.
In order to stop the buyout trend, Government placed conditions on Bailout Paybacks, making it nearly impossible for banks to free themselves of government restrictions. Banks that want to pay back their federal bailout funds and free themselves from government restrictions on compensation and dividends will have to sever their ties to another financial assistance program.
Financial firms eager to return infusions from the $700 billion Troubled Asset Relief Program will have to demonstrate that they can operate without debt guarantees provided by the Federal Deposit Insurance Corp., a senior government official said Tuesday. The FDIC program allows financial institutions to borrow money at lower costs.
To repay TARP money, the companies must meet three requirements;
First, they must raise long-term debt in the private markets without the Federal Deposit Insurance Corp. guaranteeing it. Second, they must agree to prices for the warrants the government received in return for the original loan. A warrant is the right to buy a stock at a certain price. Last, they must be deemed "well-capitalized" by regulators and the Treasury — a qualification that remains fuzzy at this point.
Despite Obama's on-camera comment that he doesn't want to manage banks, he is precisely doing just that. Its classic Washington double speak. Tell the public what they want to hear, and behind closed doors rule with a socialist iron fist.
Where is this headed? Look at other negative trends;
Today GM and Chrysler announced dealership and plant closures (150,000 job losses);
April saw staggering increases in home foreclosures, and also produced the highest unemployment numbers on record since the great depression (and its only rising). The key problem: There are no new jobs being created to offset the losses. Could this be part of an intentional plan?
It could very well be.
Staggering job losses creates a huge "potential" work force. Since no industry is stepping up to create massive employment, that job rests on the shoulders of Obama. He has the country right where he wants it: Millions of people begging him for help. And he'll give it. He will create new government jobs that might just include civilian security forces patrolling your neighborhood. This plan comes from Obama himself, when he stated our country needs a Civilian National Security Force (CNSF) that is just as well funded, and just as well equipped, as the US military.
He has the people to make it happen. Question is, what is he waiting for before he issues the order?
The American Tax Payer has been duped into buying corporations for a nationalist agenda. But who cares... IPOD's are on sale two for the price of one at Target.