Katy bar the door! Here comes another one – financial institution that is – chasing after the bailout bandwagon. Now it’s Citigroup – falling to its knees as one report states. I guess that “vision” is supposed to generate sympathy for the giant. But many believe that Citigroup won’t use the money to help the credit crisis. Instead they believe that Citigroup will use it to buy additional companies in the weakened economy.
Since October 14th, 94 banks – count’ em – have lined up to take advantage of the bailout. ProPublica, a non-profit investigative news journalism group, lists the banks and institutions, their take, and the date on which they received their approval.
What we will have in the end is a rip-off of the American public and the taxpayers. The gigantic financial institutions are not using the money as was originally intended – that is to improve the credit market; they are using it to improve their own holdings.
The bailout honeypot has become the financial world’s own private funding source. With no oversight, the banks are running roughshod over the process, deciding how they wish to spend their new-found funds. In the end, many have opted, not to help Wall Street which was supposed to ultimately help Main Street, but to help themselves by ensuring that they will be even larger than before the bailout process began.
Maybe that just means they will fall harder the next time – and if that happens, there better not be a cowering Congress to catch them. One scam is enough.
Photo credit: Taxpayers for Common Sense