Remember how it was supposed to be essential to loosen up credit to throw $700 billion of taxpayers' money to banks? Well, it looks like they have better things to do with our money than lend it out to help the economy:
But once European governments said they were going into the banking business, Treasury Secretary Henry Paulson followed suit and diverted $250 billion to buy stock in healthy banks to spur lending.
Bank executives hinted they might instead use it for acquisitions. Sen. Christopher Dodd, chairman of the Senate banking committee, said this development was "beyond troubling."
Sure enough, a day after Dodd, a Connecticut Democrat, made the comment, the government confirmed that PNC Financial Services Group Inc. was approved to receive $7.7 billion in return for company stock. At the same time, PNC said it was acquiring National City Corp. for $5.58 billion.
"Although there will be some consolidation, that's not the driver behind this program," Paulson recently told PBS television talk show host Charlie Rose. "The driver is to have our healthy banks be well-capitalized so that they can play the role they need to play for our country right now."
Other planned uses of the bailout money have lawmakers protesting, although it is fair to note there is nothing in the law that they just wrote to prevent those uses.
Sen. Charles Schumer, a New York Democrat, questioned allowing banks that accept bailout bucks to continue paying dividends on their common stock.
"There are far better uses of taxpayer dollars than continuing dividend payments to shareholders," he said.
http://www.msnbc.msn.com/id/27373962
Originally posted by jlillyHave you ever tried feeding alley cats? They just make more alley cats. How many generations will you try to feed before you realize you can't feed them all?
Could have given everyone $3000 instead though.
But that would have been too nice. Instead, fatten up the Big Cats who already their truckload of Meow Mix. Leave the ally cats to starve and suffer.