why did the government bailout the banks

Why didn't the federal government give bailout money directly to homeowners in pre foreclosure, with stipulation that money must be used towards their mortgage? Though lots of people grumble about the government bailing out banks in the financial crisis, we have at least taken some comfort in the idea that the government has turned a profit on that bailout.

Though the 2008 financial meltdown was in large part a result of the long history of government intervention with big banks, days after the stock market fell precipitously, and credit-markets dried up, the federal government … Everybody seems to bash illegals, blacks, and hispanics for being on welfare, but no one seems to be saying nothing when big companies and banks are receiving … Related. Cost of Bailout; UK Bank bailout Since 1791, the U.S. government has bailed out both states and banks in times of intense economic crisis, like the Great Depression, and the Savings and Loan Crisis of 1989. Over the coming years, the government will be able to sell off shares and get the cost of the bailout. View source .

I dont get how these supposed banks hate regulation and hate socialism and big government, and in 08 when they were failing went straight to the federal government and yes asked for socialism to save them, and to bail them out!!! Though the 2008 financial meltdown was in large part a result of the long history of government intervention with big banks, days after the stock market fell precipitously, and credit-markets dried up, the federal government once again stepped in. With the exception of Country-Wide, US banks weren't really "bailed out" during the 2008 crisis - and CountryWide was bailed out by Bank of America, not the US Government. The US government decided to bail out the banking industry (which is probably a more accurate description of what it did) because the Bush administration did not bail out Lehman Brothers. The Emergency Economic Stabilization Act of 2008, often called the "bank bailout of 2008," was proposed by Treasury Secretary Henry Paulson, passed by the 110th United States Congress, and signed into law by President George W. Bush.The act became law as part of Public Law 110-343 on October 3, 2008, in the midst of the financial crisis of 2007–08. Lehman Brothers failed in Banks. In any other industry, the government wouldn’t have offered such a generous bailout to save firms from their own recklessness. Since 1791, the U.S. government has bailed out both states and banks in times of intense economic crisis, like the Great Depression, and the Savings and Loan Crisis of 1989. To understand what happened in 2008 you have to understand how banks operate. Wouldn't this have ultimately achieved the same result (bank getting In fact, 400-plus banks are still on the government’s red list -- more than have completed the payments -- and, according to the GAO, some may never pay the money back. The government’s bailout of failing banks in 2008 proved that it didn’t learn its lesson about coddling big banks. The US government has made $88 billion on the bailout of US banks and corporations. Banks that do loan modifications for individuals and businesses during the crisis would not immediately have to mark their losses on balance sheets. Banks Repaid Fed Bailout With Other Fed Money: Government Report.