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Red River Valley | No not all profits are going to bounses but way to many are the problem with the banking system is highlited in the actions of CITI-BANK
Citi was under goverment reg's and could not pay the higher managment supersized bounses so in order to get out from under the goverment they did what - They sold some thing on the order of 25% more stock and what great advantage did this action that absultly screwed the stockholders do for the bottom line of the corp. NOTHING but drop the stock price by almost 40% overnight along with that the federal goverment came out and said that if CITI was out of tarp then the US goverment was selling there stock which they could not do after the big drop but now that 8 billion shares sit's like a 10 ton weight over the future price of CITI but thankfuly at least the management that screwed their shareholders were able to get these ungodly end of year bounses.
The problems with the bank bailout was the clown who put it in place did it without any restrictions on the people who took the funds. But then they were on there way out and had to make good on all those election contributions.
The scarest quote from all of this mess was when GWB turned to Henry Paulson and said after this is all done you are going to have to tell me why this happened. | |
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True state of the banking system
