Driving down one of our main thoroughfares yesterday, I drove past one of our local banks that was advertising its CD rates on the electronic sign out front. OK, nothing usual there. What was unusual was the line that appeared at the bottom of the sign "No TARP Funds." I was going to take a picture with my cell phone, but I decided that the attempt to do so while driving at 35 MPH might become the basis for one of my colleague's final exams in Torts or, worse yet, Criminal Law.
We've heard that some banks are wanting to cut ties to the TARP program because of the strings that came with it (NYT article). Out here in the heartland, the lack of a connection to TARP also seems to be perceived as a way to attract customers. This morning, I did notice that the CD rates and the accompanying TARP reference no longer was part of the sign's rotating advertisements.
Comments
5 responses to “A Vignette from Champaign”
Was it a Busey Bank? They were just approved for $100 million in TARP funds.
Link:
http://bailoutsleuth.com/2009/03/treasury-department-completes-more-tarp-deals/
Well, I suppose that not needing TARP funds is a way of showing that a bank has managed its affairs well, hasn’t gambled away it’s depositors money, and hasn’t made ridiculous loans and mortgages that have only resulted in lots of people getting hurt. It’s the sort of bank that would deserve to be entrusted with my deposits. (Not that you would notice any difference to their balance sheet…)
If you pay close attention, you will note that almost all declarations about returning TARP funds are conditioned by something like “as soon as possible”. It works — they get the headlines while the actual proposal is so hedged as to be be meaningless. Memo to self-righteous CEO’s: either write a check to the Treasury returning the funds, or put the full amount in escrow pending instructions, or else rest your vocal cords about how you are “returning” the money.
I know that there’s a couple of banks and credit unions up here who plan to make nonacceptance of TARP funds a marketing issue.