The Herald Bulletin

Morning Update

Annual Report: Business & Industry

March 29, 2010

Stimulus programs spurred business in 2009

Professor: Long-term effects remain to be seen

ANDERSON, Ind. — Federal government programs were the talk of the business world in 2009, from banks receiving funds to shore up lending to car dealers swamped with “Cash for Clunkers” deals.

Whether the programs will have a long-term effect on the economy remains to be seen, said Anderson University Associate Professor of Management Wendell Seaborne.

“I don’t know if we can make that judgment yet,” Seaborne said. “Short-term they did do some sales. I don’t know what the long-term impact will be. That’s probably true of about any of the programs instituted in the last couple years.”

One of the most widely used government programs associated with the federal stimulus package passed in 2009 was the Troubled Asset Relief Program, in which the U.S. Treasury bought shares of troubled banks to free up money for the banks to lend to consumers.

Seaborne said while TARP undoubtedly propped up banks while it was in effect, he could not tell what the long-term effect would be. Three banks with branches in Madison County received TARP funds, including Old National, MainSource and First Merchants.

Old National repurchased all the $100 million in preferred stock that was sold to the U.S. Treasury in December 2008, bank spokeswoman Kathy Schoettlin said. The bank also was the first to repurchase a warrant for its 813,008 shares of common stock, another phase of TARP.

As of early March, MainSource had not repaid any of the $57 million it received, and First Merchants still was waiting to determine when it could begin repaying its $116 million.

Treasury Secretary Tim Geithner said in a statement to Congress that one year after the institution of TARP, the financial impact to the country was expected to be $120 billion; when the program was announced, the impact was expected to top $550 billion.

Text Only
Annual Report: Business & Industry
  • Meyers Auto-3.jpg Auto dealers seeing increase in sales

    Overall auto sales have been climbing in the U.S., and it’s just as true in Madison County, where many dealerships have seen consumer demand on the increase.

    March 27, 2012 1 Photo

  • 0216 Welder working Ed Martin building12a.jpg Job loss, low incomes lead to population drop

    Though the federal government reports that the nation is on an economic upswing, Madison County continues to struggle with a 10.2 percent unemployment rate.

    March 27, 2012 1 Photo

  • 8 AR exit 10 3.jpg Healthy growth

    Growth along the Interstate 69 corridor has been healthy, at least for two area hospitals.

    March 27, 2012 1 Photo

  • Flagship forms hub of Exit 22

    The Flagship Enterprise Center at Exit 22 was created in 2005. The business incubator has helped more than 100 companies get a start.

    March 27, 2012

  • 7 Jahnae_Casino_1.jpg Hoosier Park VP sees tourism driving economic turnaround

    Jahnae Erpenbach, the vice president and general manager of gaming at Hoosier Park, strongly believes that the city of Anderson and Madison County are near a turning point in the area’s economic fortunes.

    March 27, 2012 1 Photo

  • 0717 news Bank Robbery12.jpg Local banks saw a year of growth

    During 2011, banks saw modest growth, returning to the industry despite a rough year in the media spotlight.

    March 27, 2012 1 Photo

  • 0903 biz Mike Baker1a.jpg Interest in people keeps Baker banking

    Mike Baker, the regional president of North Central and Muncie regions of First Merchants Bank, entered the banking industry in 1983.

    March 27, 2012 1 Photo

  • Bright Automotive Electric Car Bright Automotive may be gone, but not the future

    There’s no question the demise of Bright Automotive represents a blow to Madison County and the hybrid-electric niche it occupies in the automotive industry. But county economic development officials aren’t willing to let the engineering expertise that existed here with Bright slip away without a fight.

    March 27, 2012 1 Photo

  • 0210 news city council 033.jpg Economic Development director on the lookout for businesses

    As the city’s economic development director, Greg Winkler’s job entails seeking companies that are looking to expand or relocate. He tries to make such companies “give Anderson a hard look.”

    March 27, 2012 1 Photo

  • 0119_The Farm Site[1].jpg City wants to bring foreign companies, jobs

    One of last year’s biggest economic development announcements in Anderson was the news that a 72-acre baseball and softball training and competition complex would be built along Interstate 69.

    March 27, 2012 1 Photo

More Resources from The Herald Bulletin
Hyperlocal Search
Premier Guide
Find a business

Walking Fingers
Maps, Menus, Store hours, Coupons, and more...
Premier Guide

Generally speaking, how good are relations among people of different races in the Anderson area?

Very good
Very bad
     View Results