Home > Jay Bookman > Archives > 2008 > December > 09 > Entry
DEL.ICIO.USSunTrust gets more ‘investment’ from feds
The Atlanta Journal-Constitution
from the AJC’s Paul Donsky:
SunTrust Banks is going back to Uncle Sam and seeking an even larger investment of federal funds.
The company, which has already received a $3.5 billion investment under the U.S. Treasury Department’s Capital Purchase Program, said Tuesday it had received preliminary approval to sell an additional $1.4 billion in preferred stock to the government.
That would bring the total government investment in SunTrust to $4.9 billion, the maximum amount the bank is eligible for under the program.
SunTrust’s CEO James M. Wells III said the deteriorating economy and overall gloomy outlook pressed the bank to look for a greater cushion.
“As we now know from the most recent data, the economic situation is decidedly bleaker than was the case when we announced our initial, partial regulatory capital transaction under the Treasury program,” Wells said in a news release.
“Given the increasingly uncertain economic outlook, we have concluded that further augmenting our capital at this point is a prudent step, especially if the current recession proves to be longer and more severe than previously expected,” Wells said.
However, as the folks over at Calculated Risk point out:
“SunTrust applied for the previous $3.5 billion on Oct 27th, and received the funds on Nov 17th - less than a month ago!
Here was the CEO comment then:
‘Our participation in the Capital Purchase Program enhances SunTrust’s already solid capital position and will permit us to further expand our business and take advantage of growth opportunities. In addition, we are pleased to support the Treasury in its ongoing effort to address dislocations in financial markets and spur the market stabilization that is in the public interest.’
At the end of October, SunTrust was “supporting the Treasury” and “expanding” their business.
Now the situation is “decidedly bleaker”.
Comments
By AJC/DNC Management
December 9, 2008 3:05 PM | Link to this
Well, Oblahmi was elected since October.
I can fully understand Suntrust’s recently acquired fears.
How low will this foreign felon take us?
By Copyleft
December 9, 2008 3:42 PM | Link to this
No idea who you mean, Dull Andy. Obviously not President Obama, who is neither. Maybe you have some of your wretched Republi-scum criminals in mind? But the only “foreigner” on the war-criminals list is Kissinger. Hmm.
By professional skeptic
December 9, 2008 3:48 PM | Link to this
Note to the SunTrust Board: Undoubtedly, the precarious situation at SunTrust as described by Mr. Wells would seem to preclude any decision to dole out fat bonuses to the execs this year. Taxpayers are now your shareholders, and they are watching how you spend their funds.
By Swami Dave
December 9, 2008 3:50 PM | Link to this
Management:
I didn’t vote for Senator Obama either, but I will respectfully suggest that there is and will be plenty of issues of policy & principle upon which we can debate as opposed to continued focus on a question of fact that is largely settled.
Frankly, watching it is alot like observing someone who wants to dig a tunnel under a wall, but is digging hard miles away from it. For all the work (even if you experience measures of success), the likelihood of achieving your goals are much better focusing on the obstacle (the wall); not piles of dirt nowhere near it.
For the record, by all current information, it would appear the same with the Blago scandal. Unless there is evidence to the contrary (which will almost certainly come out in the investigation if it exists), it appears to be a situation where the governor was attempting to use the current events for his own political interests.
For me, I’m going to focus on the things that I can influence (sharing ideas, principles, and policy arguments) and avoid those things over which I have none.
-Swami Dave
By "The Corporal"
December 9, 2008 3:51 PM | Link to this
Hey, I owe them money for my new truck. If they go belly-up to I get my truck for free? My bailout?
By "The Corporal"
December 9, 2008 3:54 PM | Link to this
Off Topic
Headline:
Gov. Blago calls Obama motherfuer
I guess that’s worse than what Jesse Jackson called him?
By AJC/DNC Management
December 9, 2008 3:57 PM | Link to this
Swami: Yeah, I’m real sure that Oblahmi is hiding his birth certificate because, well, I don’t know, he feels like it?
And I’ll bet that Blago called fake Obama and threw his Senate Seat Sales Pitch to a big rubber doll in his office.
It’s all just so…………ew
By Midori
December 9, 2008 4:01 PM | Link to this
What is it about Republicans always trying to rewrite history?
I could have sworn the Presidential election took place in November.
By "The Corporal"
December 9, 2008 4:05 PM | Link to this
To Midori
Sorry, the election is not final until the electoral college votes and then private Obama is not president until noon January 20th.
Any more question?
By DB, Gwinnettian
December 9, 2008 4:07 PM | Link to this
Sigh.
Swami, you tried. Give you that much.
Later, folks.
By leni
December 9, 2008 4:14 PM | Link to this
If the banks would raise interest rates significantly, they would receive a big influx of cash from those of us who have maximums in credit unions and would like to both help banks and get a good return on our funds.
By Midori
December 9, 2008 4:14 PM | Link to this
Yes Corporal, I do have one more: why didn’t you correct Andy when he said that Obama “has been elected president since October”?
Or are all your “corrections” saved up just for “me”?
By leni
December 9, 2008 4:22 PM | Link to this
ooohh someone’s touchy again today
By mike hussein smith
December 9, 2008 4:22 PM | Link to this
I salute your principled stand, Swami
By "The Corporal"
December 9, 2008 4:28 PM | Link to this
To Midori
Sorry. I have a tendency to read those I disagree with more often. Just a natural thing to do.
You’re correct. My statement applies equally to all …………..
The election is a process.
By Swami Dave
December 9, 2008 4:46 PM | Link to this
Management:
I’ve delved into some legal / logic arguments with others on this blog so, out of fairness, I have to do so with you as well.
On his birth certificate, he proved beyond a preponderance that he was indeed a citizen to get a driver’s license or social security number or passport. As legally recognized documents which evidence citizenship and no evidence (beyond conjecture) that he is not, the rational conclusion based on information we have is that the charge is not valid. Senator Obama, currently recognized as a citizen by both state & federal governments as well as his own party, does not have to prove such; those charging the opposite have to prove their claim. Lacking evidence, I expect that will be difficult.
Logically, it is akin to the “prove your are not an axe-murderer” supposition. In making a defense, one acknowledges (tacitly) that there is something to defend. As such, he would have no motivation or reason to answer.
On Blago, the same logic applies. Barring evidence that he materially participated in the Governor’s attempt to invite bribery, he just happens to be the former resident of the Senate seat that the Governor was attempting to “sell”. If tapes or documents surface that evidences otherwise, so be it, but until then, it is at best conjecture based on one group’s assumptions about the intent of another.
As I said, I think there is plenty of low hanging fruit addressing discussions of policy and principle. The dual benefit to those arguments being that they serve to offer a reason to vote for something (the ideas & candidates who support them) than focusing on reasons why you shouldn’t vote for something / someone else.
Just my .02.
-Swami Dave
By RW-(the original)
December 9, 2008 4:48 PM | Link to this
Events that have happened since October.
Well in November we voted in a slate of electors that are far more than what’s needed for Obambi to become President.
Events that are yet to happen, but are mere formalities. A meeting of those electors to officially make Obambi the President-elect and the inauguration. Once these events happen they will both have happened since October.
By getalife
December 9, 2008 4:49 PM | Link to this
Free flowing trickle up socialism is a horrible idea.
By American Made
December 9, 2008 4:55 PM | Link to this
Leni…can you please explain If the banks would raise interest rates significantly, they would receive a big influx of cash from those of us who have maximums in credit unions and would like to both help banks and get a good return on our funds
Community Banks routinely pay more interest on CD’s, IRA’s and money markets over both credit unions and the big banks. It is also not as simple as just “raising interest rates significantly”. What banks pay on interest rates is directly related to what interest rates they charge on loans. I could also go into the unfair advantage credit unions have over community banks (very thin regulation and they do not pay taxes as an example) and how they have exceeded what they were created for to enjoy those benefits, but I won’t. You can find good rates, look at your local community banks.
By AJC/DNC Management
December 9, 2008 4:57 PM | Link to this
Swami: Bush knew about 9/11?
By Midori
December 9, 2008 4:58 PM | Link to this
Swami Dave,
you know, your’e all right.
By AmVet
December 9, 2008 5:01 PM | Link to this
Material for a future “This Day in Neo-con History” web site…
MINNEAPOLIS — Idaho Sen. Larry Craig has lost his latest attempt to withdraw his guilty plea in a Minneapolis airport men’s room sex sting.
A three-judge panel of the Minnesota Court of Appeals on Tuesday rejected the Republican’s bid to toss out his disorderly conduct conviction.
Craig was arrested in June 2007 in a Minneapolis airport bathroom stall by an undercover officer who said the senator solicited sex.
He pleaded guilty to the misdemeanor and paid a fine, but changed his mind after word of his arrest became public. Craig insisted he was innocent, but the case effectively ended his political career.
Craig’s attorney argued before the appeals court this September that there was insufficient evidence for any judge to find him guilty. Prosecutors said his guilty plea should stand.
By AJC/DNC Management
December 9, 2008 5:24 PM | Link to this
Gay bashing, AmVet?
By AJC/DNC Management
December 9, 2008 5:30 PM | Link to this
Okay, so now that we know that the Oblahmi Bribe Shop is open for business, can we hold a blog contest to see who can guess what Bruno had to give up for SoS?
I’m first, I’m first!
How about a nomination contest that she was winning?
By Swami Dave
December 9, 2008 8:25 PM | Link to this
Management:
Not that we were discussing President Bush, but (in my opinion) that would be one of the alleged conspiracies postulated by the kook liberal fringe.
However, that some of my political opponents may have alleged any number of lunatic accusations does not offer support to equally dubious claims against Obama’s citizenship. Likewise, because they might have done that, that would not justify me making a bunch of allegations without proof or evidence.
-Swami Dave