U.S. banks getting more than $163 billion from the Treasury Department for new lending are on pace to pay more than half of that sum to their shareholders, with government permission, over the next three years.
The government said it was giving banks more money so they could make more loans. Dollars paid to shareholders don’t serve that purpose, but Treasury officials say that suspending quarterly dividend payments would have deterred banks from participating in the voluntary program.
I don’t know why anyone thought putting the Crony-Capitalism-‘R’-Us administration in charge of $750 billion in slush money to shore up the financial system was a good idea.
Let’s stop pretending that the banks are doing us a favor and just nationalize them already, okay?