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We Didn't Know Who They Are? Bailout Banks Spend $872M On Branding

Because the numbers nationally are so huge, we've become deadened to the amount of money that's being sucked out of our pockets. The average person can't relate to numbers with 12 zeros.

One way to get things back into perspective is to look at specific instances of spending bailout money in this "crisis." That's what I want you to see in this morning's post.

Congress is trying to out-stupid the Banking Industry by spending money they don't have on things we don't need, all the while telling us how bad the economy will really get if we don't let them spend. The Banking Industry is giving them a run for their money, though, when it comes to un-necessary spending, and here's a case in point.

Nine banks who got your money without strings attached are spending nearly $900 million to "get their names out there" with sports arena naming rights.

Citigroup: $400 million to put its name on the new ballpark for the NY Mets.
Bank of America: $140 million to slap their name on the Carolina Panthers Stadium.
Chase: $66 million for the downtown Phoenix stadium that's home to the Diamondbacks.
Comerica: $66 million for the Detroit Tigers baseball park naming rights.
PNC: $40 million for the Pittsburgh Pirates park.
Wells Fargo: $40 million for the Philadelphia 76'rs venue
well, you get the idea...

"It's not TARP money," they all say. I guess it must feel different to the taxpayer and the accountants because the money came out of another pocket?! Who fills those pockets in the first place?

I'm Mike in Tucson, your preferred Tucson, AZ Mortgage lender.

Think of me as your Tucson mortgage expert.

Call me if I can help you with a mortgage to buy your next house or refinance the one you have:
(520) 349-9090

photo of Chase Field courtesy Wikipedia

Posted by Mike Jones on 02/05/2009 06:40 AM

Comments (44)

Bailout Money in the ActiveRain Channel

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Originally posted at: Tucson By Choice!: We Didn't Know Who They Are? Bailout Banks Spend $872M On Branding

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44 Comments on We Didn't Know Who They Are? Bailout Banks Spend $872M On Branding

FEB

2009

I just don't know who to trust. Are newspapers fairly reporting on these guys? Or are they trying to create issues to sell newspapers? Are the banks a bunch of crooks? I think the Feds need to get someone who is not married to the banks and can find out what is really going on.

Sheesh! What a mess!

If they got TARP money, it's TARP money. Since the TARP money was handed out without any requirement for accountibility, if the bank spends money, it's TARP money. If the TARP went into their general funds, anything they spend for any cause is TARP money.

I love this. Slightly off topic (real estate) but worth reading. I've got one too. I'll post it. I was having second thoughts because it's so "not hard core real estate, but, shucks, we might as well vent a bit from time to time.

Lenn,

The connection to real estate is the whole financial mess, exacerbated by congress, that keeps lending mired in the muck. If I can't qualify your buyer, you can't close the sale and move on to the next one. We're funding a short sale today that took five months for the REALTOR to make it happen, only to have his commission cut at the last minute by the bank.

Brien,

I feel like I'm mis-spelling your name. LOL Thanks for being the first to comment. Write letters. Vote. Become involved. It's your money. Hell, why not pull your account from the big bank and put it in your neighborhood Credit Union?!

Mike in Tucson

Mike,

Don't you see it? The key to prosperity is frivols advertising and a skybox at your local sports arena! All paid for by the lower class working stiffs.

Reminds one of the good seats at the Coliseum. Only today instead of Christians they sacrifice Conservatives.

Bill

Mike,
I'm so fed up as I think most Americans are!

One way to look at it is: if you spent $1,000,000 every day it would take you just over 2,112 YEARS to spend $872B. Yes that's $1 million per day, every day!

As far as advertising in sports, it has been proven that it has the highest return of any form of advertising. Look at all the poor kids that had to have Air Jordans or are wear Lebron jerseys. Go to a NASCAR race and see everyone wearing $150 Dale E. Jr. jackets. I don't know how we expect companies to pay us back (rofl)if we insist they discontinue their most profitable marketing!

I think the American public is going to scrutinize whatever the Banking industry spends whether it is TARP money or not. The bigger issue is Congress gave them the money with no accountability. When Congress came up with the first Stimulus Package, didn't they expect us to spend the money. I guess the Banks are spending the money. It just isn't going where the American public expected it to go - to help the consumers.

Hey, lets give more money to the same companies that squandered it in the first place. What?

If one looks at it from a different perspective, the Banks are circulating money into the economy by spending money on advertising, which keeps some people employed. The Marketer in me also understands that the need for communication/advertising in troubled times. Going silent is actually worse than having a presence.

That said, the whole thing is beyond comprehension. We have Rats guarding the cheese. The bank executives believe their own press. Nothing more dangerous than that. Plus, Congress is so out of touch. These people are trying to solve problems that they don't even relate to. Their houses are paid for, their health care is paid for, their retirement is paid for so they can't relate even a little bit to the realities of this situation.

This thing is like a ball of yarn that's all tangled up, we'll never get it unraveled. Better to throw it out and start over. Can't do that I know. The banks have been given money and a historic tax cut and it hasn't done one thing to stimulate the economy - period. Don't give them any more.

All I hear is if we don't do something the whole world will come to an end. Guess what? Not so. Let the chips fall where they may, and we'll regroup and get better. The government getting involved is the bigger problem.

Whether it is TARP money or not, it can still be spent it "interesting" ways. Now even if the banks add their names on the stadiums for huge amounts of money, I still may not be able to buy a ticket (let alone season tickets) or have enough money keep on the bank's account. ~Rita

Mike - this sure is infuriating isn't it. I am so tired of thinking about it, reading about it, living it!!

Mike,

WARNING! I will keep coming back to your blog if you keep putting such good content out there like this.

You are right, the government is trying to "out stupid" the banking industry and it has my head spinning. The horror!!!

Maryellen

PNC also purchased National City Bank with the Bailout money. PNC didn't even need the money but it was there for the taking.

Mike,

Way to go! Get everyone RILLLEDDD Up......! :) LOL....well done as always! You know, things like this Lend (no pun intended) to the bigger picture....This is a large, FINE example, of how and why people get confused....what I mean is that when people dont understand the #'s, or the information behind the #'s, they will follow behind anyone who they think does!@ This bailout is no different from a Truth & Lending Statement. Only difference is , it the bailout was a document that needed signing, I would probably have to call it the Lying & confusion document! :)

I love facts like these, from a professional such as yourself!

Bravo!

Darin/One Source Mortgage,LLC

**Holding lenders to a higher standard****

Why would they need TARP money if they have enough to spend on putting their name on a ball field? Why would they need TARP money if they were still able to afford to spend millions on taking their employees and best supporters on lavish vacations, spa treatments, new planes,cars,etc?

They didn't...but the government listed to their whining and their doomsday-double-speak and the lobbyists and gave it to them anyways. HOw about giving that money to the homeowners that needed it? Banks sure didn't...not if they're still allowed to be wasteful like this.

OH RIGHT...IT'S BECAUSE WE DON'T HAVE LOBBYISTS.. Oh, wait, aren't they called our senators and congresspersons? Hmmmmm...

I'm just trying to figure out how I can get a job where I'm allowed to run a corperation into the ground, get the govt to bail it out & take a 130 million golden parachute.

M&T Bank - I never understood why the bank needed to purchase the rights to own the name of the stadium.... shouldn't it belong to the "RAVENS" /or/ "BALTIMORE"? Its not like the stadium was built where an M&T Bank use to be... I mean....

Oriole Park was built on the Geppi's Museum grounds at Camden Yard... Giving the baseball stadium the name... Camden Yards Oriole Park.

M&T

I know I'm more likely to borrow money from Citigroup, because I'm such a Mets fan...nah, never mind.

It's sickening and that's all I can say!

Well, President "O" is trying to limit their paychecks...whaddya bet the "fringe benefits" get even more haywire?

Sisyphus & his rock keep coming to mind

It is all mind boggling. All I know is that we've been handing out money for weeks now and it doesn't seem to be changing a thing. Except maybe encouraging more companies to come looking for money.

Might just as well print up a bunch more send me some I promise I'll buy something we made in America with the free money and just maybe someone will be able to keep their job so they can buy a house.

What ever happened to LOGIC? If a person couldn't qualify for a loan at say 6% why would they ever be able to make good on a sub prime loan at 10%??? It was a gamble that banks took at the suggestion of the government. For those that did make good on the sub prime loans, there was quite a bit of profit that seemed to have vanished. But they got too greedy with the golden goose and ended up with foreclosures on properties and thus the downward spiral of the real estate market. Their LOGIC was more than flawed.

Perhaps there is a Scarlet O'Hara syndrome that is unnamed at this time and Congress may have caught it too!!!

But Mike... think of the "help" they are providing the economy by helping out these poor teams! If it wasn't for the banks, we might not get to enjoy sports in fancy arenas. Well, the people with jobs that can afford tickets at least.

You are right, as long as the banks are making a profit and not taking 1 penny in taxpayer money they can "spend/invest" in whatever they want. Its their profits and they can waste it as they see fit. However, as soon as they take taxpayer money its a whole new game and this is just shameful, along with the corporate jets, spa trips and more.

FEB

2009

I am in no way condoning frivolous spending. It takes money to make money though. How much do you spend on advertising compared to your yearly income. Without that advertising, how much would your income be?

There has to be some limitations on how the Tarp money can be spent, but if we put to many limitations on these funds none of the companies that need the money will take it. Where will we be then.

This country was founded on free enterprise not socialism. We need to watch how much control we give to the government, we may never get it back.

ain't it the truth? What are these people thinking. They're thinking the American public is too apathetic (or stupid) to notice. Well, we noticed and we ain't happy about it.

Even more troubling to me than this is the proposed legislation in congress right now that will require the nations credit unions to fund a bailout of corporate credit unions (similar to clearing banks in the banking world) at a cost of billions. If Credit Unions are going to be required to shoulder the burden of bailing out it's greedy counterparts, why not banks? Yet another wonderful way to stick it to the average joe...

Citigroup: $400 million to put its name on the new ballpark for the NY Mets.

Bank of America: $140 million to slap their name on the Carolina Panthers Stadium.

etc.....

etc....

GrrrrRRRRRRRRRRR!

I am so astounded by it all..what happened to the days when you actually trusted the government to do the right thing..or thought you could trust them..and the people trying to get confirmed in Washington don't even pay taxes like we poor middle and lower class people have to...it boggles the mind..what is the world coming to? it's scary..

The world is becoming a VERY scary place... not just in Washington but our government all around... There isn't any justice in our court systems anymore!!!!

Mike, it really just makes me want to crawl in a hole and hide. I won't. I know if wouldn't do any good but gee... I'm looking forward to LOOKING BACK on this mess. Billions of dollars unaccounted for. I'd just like to sell a house this month.

Everyone needs to ignore the Media and get on with thier life. Here's my 2 cents worth. This whole thing started back in 2006 when the Opposite party who is fully backed by the Main Stream Press wanted a "Change in Washington." First it was the War then when that didn't work it was the Economy. If you tell people long enough it's a bad economy it will become one. What they didn't realize was that they told it for so long everyone started pulling back and they created a lot bigger problem than they could ever have imagined. Now how do we get out of this mess. I'm tired of everyone being Depressed and Afraid. If the world comes to an end your money won't do you any good anyway. I'm pulling all my money (What little I have left) out of Wall Street and buying Real Estate at dirt cheap prices. As long as we're alive we need places to live. Encourage everyone you know to do a Self Directed IRA and Buy Houses. It will not only help us Agents but every Talking Head on TV agrees we need housing to pick back up and that will get us back going. I never did like paying someone to tell me what to do with my own money anyway. Use your own instincts and in the end you'll be better off. If you're not at least you can say you made your own decisions and blame yourself. I leave you with one of my favorite quotes. "IF YOU THINK YOU'LL SUCEED OR IF YOU THINK YOU'LL FAIL, EITHER WAY YOU'RE RIGHT." YOU WILL BECOME WHAT YOU BELIEVE.

You are correct. I am an average person and I dont relate to 12, 9, or 6 zeros after a number so I leave it to the experts. They just better get it all right in the end and turn this around quickly.

I wish they would just forget this whole spending spree idea.

Totally agree Mike, great post. Outraged watch dog that you are! They think that we don't get it, but they are so ridiculous it's beyond description. If they had to take THEIR OWN checkbook and write a check to put their own personal name on say the 'Panther Stadium sponsored by Mike Jones, loan officer extraordinaire'. I'm sure it would be a different story. Your hand would begin to shake writing in all those 12 zeros. Is there enough room on a check BTW?

I could not have said it better myself Mike. On a similar note, I also believe it is a bad idea for Congress to set ceilings for executive pay. However, if these lenders and other companies approach Congress hat in hand, it is only reasonable for Congress to dictate the conditions for receiving the relief. Brace yourself, the healthcare system and our medical destinies are next.

Yea those Wall Street folks are smart. First they talk the public investors out of their money then they talk congress out of the Tax Payer money.

Hi, Mike. It all makes me really sick- what are we learning from any of this?! I was listening to NPR this morning about the "worry" that the stimulus will not cause home owners to spend, spend, spend, and how it won't stimulate anything. Let's think about this- hm, if our clients had saved well before when they lost jobs or had rates adjust perhaps they could have made their payments, and we wouldn't have SO many foreclosures. An economist on NPR was saying that there is a proposal in congress about rates going to 4% backed by Fannie and Freddie. I wonder, what am I missing? Will Fannie and Freddie back refi's without equity- I don't think so! These guys are talking about policies that will effect very few!

That is totally discusting. How can they get away with this sort of stuff and sleep at night?

FEB

2009

All,

I appreciate the feature in the Active Rain newsletter! I'll see each of you on your blogs; thanks for taking the time to comment.

Mike in Tucson

Just goes to show the lobbyists are hard at work in Washington.

Whatever happended to good old days of public protest?

"All we are saaayyying is give the American Taxpayer a chance"

Doesn't quite roll off the tongue like John Lennon's "Give Peace a Chance", but if you sing it fast enough it's kinda catchy.

Here's to showing my age...

Some of these comments, oh my.

Funny, back when I was working at Qwest, they were laying off thousands of people because they could not afford to keep them. At the same time the spent some hideous amount of money putting their name on a stadium in Seattle. Told us it was very important to advertise, best use of those dollars. OK, I'll stop.

We are in a mess that will take a miracle to cure.

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Mike Jones

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