This from today’s Democracy Now:
The Washington Post reports major US banks are on pace to spend more than half their bailout money on rewarding their shareholders. The thirty-three banks are set to receive some $163 billion in government bailouts. Half of that sum would go toward paying off shareholders over the next three years. The Bush administration touted the bank bailout as necessary to resume lending. But Treasury officials say the banks would never accepted loans if they weren’t allowed to redistribute dividends to shareholders. Democratic Senator Charles Schumer of New York is calling for the suspension of dividend payments at bailed-out banks. This comes as the New York Times reports the insurance company American International Group has rapidly used most of its $123 billion government loan with little account for where the money has gone. AIG has drawn some $90 billion in government money so far.
Did I read this correctly?! “The banks would never accepted loans if they weren’t allowed to redistribute dividends to shareholders”. THE BANKS WOULD NOT HAVE ACCEPTED?!
Can anyone imagine a more arrogant attitude from the banks which the shareholders are now asked to bail out?
This just goes to show who really holds power in the USA.