Tuesday, November 11, 2008

Trick or Treat at Hank's Bank Bailout Window

Two weeks after Halloween, corporations dressed up as banks to get access to the $700 billion TARP program. American Express and their Travel Related division are now banks. The Fed approved the two firm's applications, citing "emergency conditions."

Insurance companies are experiencing urgent conditions. How soon before they become banks? Hedge funds have cratered, do any surviving ones want to become a bank? Who's next? GM, Ford or Chrysler?

How does a CEO turn his company into a bank? Does he walk around holding metal bars asking for deposits from the Fed? If approved, do they get one trip or many? Fannie Mae is close to burning through their first $100 billion and may be back for more. Where does the taxpayer frightmare end? How much corporafornication can American stand?