Banking panel chairman say using bailout funds for bonuses against law
October 31, 2008
Congressman Barney Frank is accusing financial institutions of “distorting” the government’s $700 billion bailout plan by using funds for bonuses, dividends and acquisitions.
The chairman of the House Financial Service Committee says such uses of the funds are a “violation of the terms of the act.” Frank says the money should used for “relending and no other purpose.”
The Massachusetts Democrat joins a growing chorus of lawmakers criticizing the Bush administration over management of the bailout plan.
Nine banks have received a $125 billion stock investment from the Treasury Department. While the law contains some limits on compensation, it does not prohibit recipients from paying dividends to investors, making acquisitions or awarding bonuses.
Seems they need to tidy up a few things. Trust George Bush and his cronies folks he knows what he is doing. They would never coerce or lie now would they? Honest as the day is long I hear. Bush knowing what he is doing would be a shocker for anyone. Well unless your out for profit and George is quit good at helping his friends become very rich.
I would keep a very close watch on the outcome of all the Bailout money and who gets what.
Will anyone be prosecuted for these crimes that are now being perpetrated against the US tax payer?
We will see. But folks don’t hold your breath.
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