Banks using half the bail-out money to pay dividends to stockholders, not for loans as Congress intended

As if we needed further proof that Republicons -- who control the banking
industry -- are liars and crooks. The bankers came to Congress, hat in
hand, begging for our tax dollars so they could make loans to keep small
businesses afloat. Now that they have the money, they're giving over half
of it to their stockholders -- all the more reason to tax the living shit
out of capital gains and dividends of people making over $250K a year.


http://www.washingtonpost.com/wp-dyn/content/article/2008/10/29/AR2008102904533.html?hpid=topnews

Banks to Continue Paying Dividends
Bailout Money Is for Lending, Critics Say
By Binyamin Appelbaum
Washington Post Staff Writer
Thursday, October 30, 2008; Page A01
U.S. banks getting more than $163 billion from the Treasury Department for
new lending are on pace to pay more than half of that sum to their
shareholders, with government permission, over the next three years.

The government said it was giving banks more money so they could make more
loans. Dollars paid to shareholders don't serve that purpose, but Treasury
officials say that suspending quarterly dividend payments would have
deterred banks from participating in the voluntary program.
Critics, including economists and members of Congress, question why banks
should get government money if they already have enough money to pay
dividends -- or conversely, why banks that need government money are still
spending so much on dividends.

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