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Bankers don’t help themselves do they?

So the governments of the world pumped in $3.5
trillion
to the banking markets over the past month.  Markets that
have lost $2.8
trillion
over the past year.

And what do the banks do?

Well the US banks, who received $700 billion, used $70 billion to pay staff bonuses and about $100
billion
to pay shareholder’s dividends.

This has not gone down well with the public, with the Washington Post’s story
about the latter receiving over 100
comments
.  Here’s a selection of the ones that received the most
recommendations:

WillSeattle wrote:  “This is total
bull.  Look, I’ve owned a few hundred or a thousand shares of banks (BofA,
Citi, MS, PCBC, WaMu) before.   And having them pay dividends using
taxpayer dollars is just plain WRONG.  PERIOD.  Only a Red Socialist
Republican would think that was good.”

yxl12 wrote: “Are you nuts? What is the ABC of the
investment? ‘From your investment, you can either lose or gain in future, but
there is no guarantee.’ With our tax dollars, the financial institutes are
allowed to pay dividend? What kind of country is this?”

bfjackjernigan wrote: “That’s it. I’m getting a
state charter for ‘Jack’s Pretty Good Bank of Commerce and Industry’. Then I’m
going declare insolvency and request bailout money. Then I’m then going to loan
every cent of the bailout to myself and default. I’d then state that I’d gladly
go after myself to collect but being insolvent I don’t have the means to sue
myself. If compelled to take action, as both the plaintiff and defendant I
could keep myself out of court by filing blocking motions against myself.
At last. I’ve mastered the pretzel logic of a free economy. Now I’m free to
steal your money and mine. I’ll socialize your losses and privatize my profits.”

cmecyclist wrote: “‘Ed Yingling, chief executive
of the American Bankers Association, said these banks don’t need the money, but
they are willing to use it to increase lending, so long as they are not
punished for doing so.’  In other words, the banks that don’t need the
money are taking the money to ‘lend’ so that they can use it anyway that they
want to. Taxpayers be damned. They’re giving us the finger.”

gonzo3 wrote: “There was never any doubt in my
mind this would happen. Protecting shareholders and ensuring payouts to CEO’s
was on top of Paulson’s list. Why would anyone think otherwise. We have some
really smart legislators who need to be replace. Too bad those crooks will get
a retirement with benefits instead of jail time.”

UnitedStatesofAmerica wrote:  “The bailout is
for the Rich – paying dividends to Buffet from bailout money proves it.”

rymp wrote: “Another idiotic congressional
program. Why are we the tax payers paying dividends to share holders? This is
baloney. Just like the banks are putting billions aside of our tax money to pay
for bonuses. Since when do you get a bonus for failure I mean if you aren’t a
CEO that is.”

wyne wrote: “When businesses lose money, they cut
down or eliminate dividends. So why not banks? Just horrible.”

mriley0223 wrote: “While the rich get richer, I can’t
pay for gas, food or clothing for my family.”

anniejoyce wrote: “My daughter came home today
crying. She’s exhausted after spending day after day looking for a job. She
lost her job as a massage therapist because massages became wants instead of
needs. How do these people sleep at night?"

Jimof1913 wrote: “You’ve got to be kidding me!
They run the bank into the ground, ask for a government bailout, and then use
the money to pay dividends. Is there no shame with these bank executives?”

TotalRecall wrote: “Here we go again with this ‘no
regulation is good regulation’ BS!!! I’m pissed!!! This is BS!!! Not only do we
not have a voting stake in these companies to kick out these selfish, greedy
executives, but they are pissing away taxpayer money on their own
greed!!!!!!!!!!! REGULATE!!!!!!! REGULATE!!!!!!!!! REGULATE!!!!!!!!!!!!!!”

MariaAntoinette wrote: “This is absolutely
outrageous! Is this some kind of joke?! This is how revolutions start.”


About Chris M Skinner

Chris M Skinner
Chris Skinner is best known as an independent commentator on the financial markets through his blog, the Finanser.com, as author of the bestselling book Digital Bank, and Chair of the European networking forum the Financial Services Club. He has been voted one of the most influential people in banking by The Financial Brand (as well as one of the best blogs), a FinTech Titan (Next Bank), one of the Fintech Leaders you need to follow (City AM, Deluxe and Jax Finance), as well as one of the Top 40 most influential people in financial technology by the Wall Street Journal’s Financial News. To learn more click here...

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