EIN News — Will U.S. Banks Be Allowed to Use Billions of Government Money on Dividends? EIN News’ Banking Industry Today Offers Extended News Coverage
WASHINGTON, October 30 /EIN News/ – The stated purpose being to increase lending and inject capital into Main Street, the U.S. bank bailout plan may end up channeling government money into shareholders’ pockets.
At the present pace, bank dividends will consume 52 percent of the Treasury’s $250 billion investment over the initial three-year term, according to an analysis by the Washington Post: http://www.washingtonpost.com/wp-dyn/content/article/2008/10/29/AR2008102904533.html?hpid=topnews
The U.S. Treasury’s approach contrasts with decisions by foreign governments, including Britain and Germany, to require banks that accept public investments to suspend dividend payments until the government is repaid.
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