Wednesday, October 29, 2008

Tens of Billions in Federal Bail Out Capital Going to Profit Bank Shareholders First

According to tomorrow's WaPo: with the blessings of the U.S. Treasury, half of the $163 billion given to U.S. banks to spur lending on behalf of "Main Street" is going to the banks' private shareholders as dividends.

So, maybe someone can explain to me again and more slowly how the bail out bill was necessary to help Main Street more than Wall Street, because it seems to me that shareholders sure are skimming a huge cut off the top.

At this rate, some bail out capital may eventually trickle down to Main Street, but there likely will be nothing left for Side Streets and Back Streets. How was this bill not approved under false pretenses?

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