forgiving a local bank of 5 million in tarp funds

forgiving a local bank of 5 million in tarp funds

fiction
edward w pritchard

There is a small local bank in my area who owes Tarp [troubled assets relief program] eight million dollars and has been given an offer in compromise to pay back only three million by government entities charged with collecting back the tax payers subsidy monies. Having worked in the Banking field in Commercial Loan workout I will be presumptuous and write against the deal on behalf of the silent taxpayers, to busy with their own interest to devote time or thought to the matter.
First any bank in the future who owes the Federal Government money will well note the extraordinary deal. An offer to pay back about a third of the money owed is quite a deal.
Were there any personal guarantees or security agreements by anyone who was involved in the original deal at the Bank in question? How can the tax payers be sure that the collectors for Tarp are making a prudent offer based on the circumstances. How would a non corporate deal look if an individual owed eight million. Would they be treated the same way the bank has been treated? Was any collateral liquidated prior to this last ditch effort to take a partial recovery for the tax payers?
What steps are in place to keep the lenders who approved the original eight million dollar loan of Tarp funds to the small bank in Akron, Ohio from making the same mistake in their loan judgment in the future.
Is the three million dollar partial payment available as cash in hand or will the tax payers have to accept payments or further compromises to collect.

Five million dollars is a lot of money around Akron, Ohio. We are laying off school teachers locally. Five million dollars would help to teach a lot of children here to become more proficient in math and science.

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