10/09/09 Stockholm, Sweden – The biggest story generally going unreported in the mainstream media is that many financial institutions are simply failing to pay back your hard-earned tax dollars.
According to USA Today, “The U.S. taxpayers’ investments in smaller banks are increasingly at risk… 34 financial institutions did not pay their quarterly dividends in August to the Treasury on funds obtained under the Troubled Asset Relief Fund (TARP). The number almost doubled from 19 in May when payments were last made,” a clear sign the trend is worsening.
Among the non-payers are obvious weak giants like AIG and CIT, but the list goes on and includes many other players. It’s an especially disappointing trend given that we’re in a period of “recovery.” When this false rally collapses the number of institutions that are unable to meet TARP obligations are bound to skyrocket. Taxpayers beware.
More on this disturbing trend is available from Naked Capitalism in its post on missed TARP dividends.
Rocky Vega
Rocky Vega is publisher of The Daily Reckoning. Previously, he was founding publisher of UrbanTurf and RFID Update, which he operated from Brazil, Chile, and Puerto Rico, and associate publisher of FierceFinance. He specialized in direct marketing at MBI, facilitated MIT Sloan School of Management programs, and has been featured on CBS. Vega graduated with honors from Harvard University, where he was on the board of Let’s Go Publications and directed business programs involving McKinsey, Goldman Sachs, and Harvard Business School faculty. He is also enrolled at the Stockholm School of Economics.
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Is it possible that we’ll all wake up one day find ourselves living in the economic equivalent of Cuba.
Of course, that might be preferable to the nightmare of living in the economic equivalent of Zimbabwe or Wiemar Germany.
Nice example the banks are setting by not making good on their loans…hypocricy at its finest.
Just wait until the taxpayer takes the banks lead and stops paying their taxes. I mean, the banks don’t have to repay billions in loans why should Joe Six Pack pay a few thousand in tax?
FDR proctected the American homeowner, Main Street from Wall Street with the Banking Act of’33, was branded a “Socialist” for his foresight. Bush II was branded the “Worst Pres. in history” because Clinton overturned the Banking Act of ’33, and Wall Street AND homeowners collapsed as a rsult!