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Thursday, July 30, 2015

Banks Squirm As Congress Moves To Cut The 6% Dividend Paid To Them By The Fed

On December 23 of this year, the Federal Reserve will be 99 years old. And throughout that 99 years, regardless of boom, bust, recession or Great Depression, the biggest Wall Street banks have been enjoying a 6 percent, risk-free return on the capital they hold at the Fed in the form of dividends.

Have you looked at your checking or money market bank statement lately from JPMorgan Chase or Citibank? How about the statement showing the interest you’re earning on your mortgage escrow account with the big banks? While the country suffers through the lingering effects of the Great Recession caused by the biggest Wall Street banks, the public typically receives less than 1 percent on their deposits at the big banks, while the government has legislated a permanent, risk-free 6 percent guarantee to the Wall Street banks for their capital on deposit at the Fed. Now that’s an entitlement program that needs to die!

This corporate welfare program gets even better: if the shares of stock were acquired prior to March 28, 1942, the 6 percent risk-free dividend is tax exempt and the bank doesn’t have to pay corporate taxes on it.

4 comments:

  1. We need a real business man like Donald trump to stop this madness.

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  2. So they were making 6% on what they held, over 6% on what they lent and 0% on what they borrowed?! How the hell did they fail!!

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  3. @3:49, when people borrow money and don't pay it back then you don't collect...

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  4. Yep the FED is the evil empire of greedy bankers who have raped this country. They should be hung for treason and theft. Our leaders on the gallows with them. Perot had it right now lets see what happens to Donald. Why will he bow out? If the rainbow don't sanction it ...it wont happen

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