Was this part of the TARP agreement? Bank of America (BAC) announces a goal to make $50B in...


Was this part of the TARP agreement? Bank of America (BAC) announces a goal to make $50B in loans over the next 10 years to green businesses. (PR)

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Comments (17)
  • maudie
    , contributor
    Comments (488) | Send Message
     
    and $45 billion in bailout to BAC. I guess we'll be doing it again in a few years after this $50B sinkhole.
    12 Jun 2012, 10:56 AM Reply Like
  • jt380
    , contributor
    Comments (106) | Send Message
     
    I read this yesterday and wondered why they wouldn't reinvest it in themselves to be a contender in the banking industry again rather than going green, but what do I know
    12 Jun 2012, 10:58 AM Reply Like
  • Mike Maher
    , contributor
    Comments (2862) | Send Message
     
    Banks make loans as part of their business model. Loans that get paid back lead to profits which can be reinvested in the company.
    12 Jun 2012, 11:09 AM Reply Like
  • idkmybffjill
    , contributor
    Comments (1911) | Send Message
     
    Thank you Mike for pointing out the obvious but it really needed to be pointed out. People, have you forgotten how BANKS are supposed to make money? (hint: LENDING, not from making massive prop desk hedge fund-esque trading moves)
    12 Jun 2012, 03:49 PM Reply Like
  • jt380
    , contributor
    Comments (106) | Send Message
     
    supposed to make money, yes. Doesn't seem to be happening as of late though. Bad ideas are bad ideas. I hope it works out for them though, make my position a little more attractive
    13 Jun 2012, 08:29 AM Reply Like
  • lafano
    , contributor
    Comments (219) | Send Message
     
    Another losing proposition. However, who cares since it's "nationalized"...lol...
    12 Jun 2012, 11:14 AM Reply Like
  • montanamark
    , contributor
    Comments (1455) | Send Message
     
    its an "investment"; maybe they are just following the example of those solar cos -the ones that made contributions to obama. look what it did for algore. is bank of america still a "bank?"
    12 Jun 2012, 11:28 AM Reply Like
  • Mike Maher
    , contributor
    Comments (2862) | Send Message
     
    I think everyone is missing the point that these are loans the bank is making which will likely be supported by cash flows from power purchase agreements, not loans to risky start ups like the Department of Energy makes.
    12 Jun 2012, 12:12 PM Reply Like
  • COS911
    , contributor
    Comments (43) | Send Message
     
    Green companies are by deffinition risky. There is a very strong likelyhood of a very high default rate unless "green" is a publicity stunt. And as you pointed out above, bank loans have to get paid back to make money for the bank. This sounds a lot like more political cronyism, which is what took BoA, with the help of the incompetence of Ken Lay, from the top of the banking world to near the bottom.
    12 Jun 2012, 05:09 PM Reply Like
  • Mike Maher
    , contributor
    Comments (2862) | Send Message
     
    Power purchase agreements on green electricity generating facilities such as solar and wind lock in profitability for the company over the term of the loans. BAC did not say they are investing in green start ups, they said they are loaning money to companies doing green projects. Google putting solar panels on their roof is a green project. Prologis putting solar panels on all their roofs is a green project. Waste Management installing biogas generation facilities at their waste sites is a green project. No major solar or wind farms in the US are done without power purchase agreements, and all of the projects will be profitable over the course of the PPA, thanks to the taxpayer, the utility, and the rate payer. These are the facts of the electricity generation market.
    13 Jun 2012, 12:40 AM Reply Like
  • acesfull
    , contributor
    Comments (441) | Send Message
     
    $50B in loans to green businesses? That's just great. And what is the success rate for green businesses? Not so great. Just like the mortgage loans to people who could'nt afford homes before the housing collapse. Did Bank of America learn anything at all about lending money to people or businesses that can't really afford them? Apparently not. It seems money comes cheap to these executives running BAC. The only ones who really lose are the shareholders. Now how much is the average American supposed to take? We have a president that's all screwed up. We have a congress that's not much better. And, lo and behold, we have Bank of America executives trying their best to stick it to their shareholders. Total incompetence. So now we have a bunch of politicians to get rid of in november, and we have an idiot CEO and a bunch of BAC executives to dump along with it. Do these people even understand what is happening? If they were'nt doing so much damage, it would be a joke.
    12 Jun 2012, 01:50 PM Reply Like
  • adelvecchio9
    , contributor
    Comments (3) | Send Message
     
    BAC didn't lend money to the folks that are defaulting on their mortgages - those were originated with Countrywide... And the goal of any business is to make money for the shareholders, not stick it to them. That wouldn't make much business sense, now would it? Maybe they actually have the education, background, and knowledge to make a business decision that they feel will make money AND win over a little market favor....but don't worry, I can tell by your intelligent comment that they aren't really concerned with your minor investment portfolio....
    13 Jun 2012, 02:31 AM Reply Like
  • acesfull
    , contributor
    Comments (441) | Send Message
     
    Geez, Adel. Don't get so defensve about BAC. I did'nt mean to raise your blood pressure. It's just that I remember when Ken Lewis bought Countrywide for $4.1B back in 2008, knowing Countrywide was loaded with toxic loans. Oh yea, he was'nt sticking it to anybody. He was just trying to make money for the shareholders. Have you not been reading the papers for the last four years? Right? It was just another of many business decisions they felt would make money and win over a little market favor. You're right about one thing, though. They are'nt conerned about my minor investment, or yours for that matter. They have'nt got the business sense to worry about what really matters. Their shareholders.
    13 Jun 2012, 08:45 AM Reply Like
  • adak
    , contributor
    Comments (3) | Send Message
     
    yeah, i think you guys are missing the point. i think BAC would make most of these loans either way. now it's just trying to make sure green companies make up a certain portion of their originations/portfolio.

     

    probably marketing to convince people that it's environmentally conscious. and maybe to get anti-coal protestors off their back and to have them stop swarming their shareholders meetings.
    12 Jun 2012, 02:32 PM Reply Like
  • bbro
    , contributor
    Comments (11223) | Send Message
     
    The money lent from TARP has been paid back....when are our loans(?) to
    Iraq going to be paid back??? Selective Outrage???
    12 Jun 2012, 03:47 PM Reply Like
  • lafano
    , contributor
    Comments (219) | Send Message
     
    Has GM and AIG paid back in full?
    15 Jun 2012, 09:19 AM Reply Like
  • msphar
    , contributor
    Comments (182) | Send Message
     
    I just hope most of these green loans go to companies that I recognize like XOM and COP. Now those would be green loans to be proud of...
    14 Jun 2012, 10:04 PM Reply Like
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