Banks rebel against new regulations
The New York Times reports:
Many banks probably took money that they didn't need to take. They probably took it simply because it was available.
Thanks to Tony Troglio for the link.
Financial institutions that are getting government bailout funds have been told to put off evictions and modify mortgages for distressed homeowners. They must let shareholders vote on executive pay packages. They must slash dividends, cancel employee training and morale-building exercises, and withdraw job offers to foreign citizens.
As public outrage swells over the rapidly growing cost of bailing out financial institutions, the Obama administration and lawmakers are attaching more and more strings to rescue funds.
The conditions are necessary to prevent Wall Street executives from paying lavish bonuses and buying corporate jets, some experts say, but others say the conditions go beyond protecting taxpayers and border on social engineering. . . .
Many banks probably took money that they didn't need to take. They probably took it simply because it was available.
Thanks to Tony Troglio for the link.
Labels: bailout
posted by John Lott at 3:43 AM
2 Comments:
"Many banks probably took money that they didn't need to take. They probably took it simply because it was available."
actually many were told by the Federal government to take the money. Case in point was Northern Trust. They didn't need the money, but were told "you will take the money." they reluctantly took $1.3 billion, were castigated by Barney Frank and his cohorts for money they spent at the golf tournament, and are now looking at ways to repay the money as fast as they can
Bank of America told the feds are performing due diligence on Merrill Lynch that they didn't want them were told by the Feds "take them and we'll give you x billions"
now CEO Lewis is being hounded by Frank and his minion
Is anyone so naive to think that there is a "free" lunch?
Pay the money back and tell Barney to shove it!!
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