by justinb
3. December 2009 20:02
Bank of America recently decided to return $45 Billion in unwanted TARP funds while the job market is starving for a cash infusion to kick start hiring. If this isn't a slap in the face to the unemployed, than i don't know what is a slap in the face. Through returning the TARP funds, BofA basically acknowledges that it didn't really need the funds in the first place. Moreover, while the Bank refers to the move as a benefit to taxpayers, in essence, it's a move to make way for an incoming high paid lofty CEO which would have been restricted while the Bank was in possession of TARP funds. Meanwhile, job seekers are forced to hope on hope with the job market recovering and employers hiring.
Bank of America can go on dressing up this move as positive public relations, but surely BofA's move brings about serious questions with respect how funds withdrawn from the behemoth Federal spending bills are rationed. How so? Well even though Congress recently approved extension of unemployment benefits for the well over 16 million unemployed, it wasn't met without skepticism from the "right" alleging that another round of unemployment extensions would only create a climate of unwillingness to look for work. Then on the other hand, the Government rushes to the aid of all mighty BofA with an unprecedented cash infusion of $45 Billion, only for the Bank to fling its nose at the funds and decide to return the funds the Government. OK so the unemployment extension funds and the $45 Billion BofA is returning, comes out of two different pots of cash, the fact of matter is that it still illustrates what's more important - the elitist over working class Americans.
So while it would appear that BofA returning the $45 Billion in aid received is good news, it doesn't look like it was well coordinated. Perhaps, BofA should have worked more closely with the Government in making such a decision versus bucking to stock holders (of course preferred stock holders). In doing so, the Feds could have saved face and not be under the spotlight for making the decision to lend BofA $45 Billion in cash. So, now the Feds are looking at explaining why the job market is starving for cash to spur hiring, while BofA returns unwanted TARP funds. I would hate to be the one stuck with the job of explaining that to the public. 
