Citigroup, Bank of America ‘Nationalized’ as U.S. Calls Shots

[dkf]

http://www.bloomberg.com/apps/news?pid=20601087&sid=ayHp841RcKAY&refer=worldwide

Jan. 23 (Bloomberg) -- The U.S. government’s decision to pledge billions of additional dollars with strings attached to Citigroup Inc. and Bank of America Corp. may be nationalization by another name, according to former bankers and regulators.

Faced with pressure from lawmakers, banks have shaken up management, eliminated executive bonuses and staff and canceled conventions. They’ll be forced to do monthly reports on how they’ve boosted lending while slashing quarterly dividends to one cent a share for three years.

“When the Treasury tells a bank to pay a penny a share vs. its old dividend, you know who’s calling the shots,” said Jon Bruss, a 40-year industry veteran and founder of Hartland, Wisconsin-based Fortress Partners Capital Management Ltd., which invests in banks. “It may not be de jure nationalization but I think it’s de facto nationalization.”

[FreakinDJ]

1. If the Shit Pile was solvent we wouldn't be bailing them out

so who the fuck are they to comment on how much dividend the government directs them to pay.

Look at it this way - if they didn't bail them out the company would go broke, their stock would be worthless, and they STILL would have no dividend. This guy is really bitching about the amount of corporate welfare they are getting

- what a RATpublican puke

[dkf]

2. I wish they would just call a spade a spade and nationalize them

if they are in that much trouble. Its outrageous to see nice hefty bonuses when a company is broke.

[stray cat]

3. nationalization even if by another name would be great!