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But using it to repay her ShoreBank loan did help her reduce costs.
"It's a little like promising to increase spending on the Visa card but then using it to repay the Amex bill," noted Nick Parsons of National Australia Bank drily.
Given the woes of Citigroup and some other troubled financial institutions, taxpayers might question why banks are still forking out any cash to good causes rather than using it to repay government loans.
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The money is not technically part of the $1.6 billion in customer cash that vanished from the firm in its final days, but the trustee, James W. Giddens, plans to use it to repay the farmers, traders and hedge funds who have waited more than six months to get all of their money back.
But Levene spread the money around his various accounts and used it to repay various clients.
Of the cash received by Enron, $250 million passed to another subsidiary, Enron North America, which used it to repay an old loan from Citibank.
"He hasn't decided yet how to reinvest this money, but he's not likely to use it to repay loans," Mr. Shea said.
Those that have raised fresh equity, such as JPMorgan Chase, will use it to repay taxpayers.In this section This way out Raw deal Bottom fishing Return of the grave-dancers Light work In the blood ReprintsHence the focus on private equity.
If the bank had withdrawn almost $250 million directly from Mr. Madoff's firm, Bernard L. Madoff Investment Securities, the bank would be subject to federal bankruptcy rules that give the court-appointed trustee leeway to recover money paid out over the previous year and use it to repay creditors.
So it either sat on the cash or used it to repay creditors and depositors who wanted their money back.
And then we have today's blistering report from Neil Barofsky, the special inspector general overseeing the TARP program, showing that many of the banks -- instead of using the bailout money they received to boost lending -- have used it to make investments, repay debts, or buy other banks.
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