TARP or CARP? We hope that TARP's money is being used wisely in the mortgage sector. According to this Reuters article, 33 TARP recipients missed a dividend payment last month. This includes 15 banks and thrifts who missed a May 15 dividend payment, with 18 more missing a payment for the first time.
Out of the 33 banks in question, 11 are in California, one of the worst states affected by the financial and housing crisis. The largest company to miss the dividend payment is the New York based CIT Group Inc. ($71.02 billion)
While the TARP program allows a maximum of six payments to be missed before action is taken, it's ironic that many of these same banks make an incredible amount of money on overdrafts, late and missed payment fees.