President Obama is sponsoring a bill by the Senate Banking Committee Chairman Chris Dodd(D-CT) that would reward the Financial Firm Goldman Sachs with up to Billions of Dollars. The bill implements a $50 billion resolution fund to the firms creditors through fees that would come from banks and other businesses, which the bill calls a "nonbank financial company." Critics are calling it a "backdoor bailouts" to Goldman Sachs who was already payed $12.9 billion in tax dollars through the bailout of AIG.
Supporters are denying the bill is a bailout because its demands the removal of some management positions but Financial Crisis Inquiry Commission member Peter Wallison said "that act - paying off the creditors when the government takes over a failing firm - is a bailout. It doesn't matter that the management lose their jobs, or that the shareholders get nothing. When the creditors are aware that they will get a better deal with the failure of a large company than they will get with a small one that goes the ordinary route to bankruptcy, that is a bailout".'
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Hmmm....funny how banks get bailouts, but would the guy/girl with the small failing business get a free hand out from the Government?...I think not.
ReplyDeleteNothing but double standards all around me.
Yet these greedy banks will continue to pay inflated incomes to their "top" staff who do nothing but grind the organisation into the ground with their ridiculous salaries.