Who is Stealing, um, I Mean Where Is The Money Going?

American Scofflaw

Where is this money going?

The local bankers I spoke with who took TARP funds say they will use it as the Treasury intended, to increase lending. But few could point to specific loans they had made with TARP money or say whether their overall lending had increased since they took it.

Bank of Marin, which serves consumers and businesses in San Francisco, Marin and Sonoma counties, has been holding public meetings to explain "the purposes of the TARP money, why we took it and what we are doing with it," Russell Colombo, president and chief executive at Bank of Marin says.

But even Columbo can'tb say where the money is going. "I wish I could say", said a solemn Columbo, "everyone keeps coming back for billions more."

In late October, Paulson forced the nation's nine largest banks to accept a total of $125 billion, regardless of their health. San Francisco's Wells Fargo got $25 billion in that first round. Citigroup and Bank of America later came back seeking additional billions .