What a surprise upset about the bailout money!
This is an excerpt from the web. I doubt anyone on this web forum will find the news shocking:
Dangerous "Dirty Dividends"
By Jim Nelson
November 1, 2008
Bank of America, JP Morgan Chase, Citigroup, and the rest of the crew arestarting to cash in their government bailout checks. And in a "you gotta be kiddingme" moment, we find out that they aren’t using all of that money to repair badassets or offer more loans…
Instead, these banks are continuing their dividend payments, which otherwisewould probably have been cut.
We’ve recently written about Warren Buffett’s $5 billion investment inGoldman Sachs and its accompanying 10% dividend yield on his preferred shares.Well, GS just received a nice fat check of $25 billion from the U.S.taxpayers.
Isn’t that nice. Your tax money is going to be sent to the world’s richestman, because he cut a sweetheart deal for Goldman Sachs preferred shares…a dealwhich you or I could never have gotten.
The list of "dirty dividends" doesn’t stop there. Wells Fargo, one of thefew banks to swim through this mess with little problems, is using $4.4 billionof its $25 billion bailout to hand over to shareholders. Not loosen the creditmarket, not invest in small businesses or financially sound homeowner hopefuls…Nope, to keep their shareholder’s trust.
News of these schemes is finally hitting Washington,and the likes of Sen. Chuck Schumer of New Yorkare speaking out. But it’s too late. These dividend plans are already ineffect, and our money is lost…
I would love to be able to get a detailed report of who and what this money is going for or being spent on. So far I can only find very limited information from the British media usually. I doubt any of us will ever know the true scope of this unbelievable scam. And guess what? They say it might be 2 Trillion before it’s all done over then next 2 years, and even then it may not be done. As Chris reported, credit may be next.