Four more banks have announced their approval to receive taxpayer capital through the Treasury Department's $700 billion Troubled Asset Purchase Program. But a growing number of financial institutions are opting not to take the government money.
At least five banks said this week that they had decided against selling preferred stock to the government. They included United Bankshares Inc., which was approved for $197.3 million in aid, and Bridge Bancorp Inc., which was approved for $15 million
United Bankshares said that although it was honored to be selected for the Treasury Department's stock-purchase program, it decided that going forward with the deal would not have been in the best interests of shareholders.
"The program's restrictions on possible future dividend increases, the dilution to earnings, and the uncertainty surrounding future requirements of the program outweighed the benefits of United's participation,'' Chairman Richard Adams said.
(emphasis ours)
Folks, perhaps the realized consequences of selling your soul for some quick cash is starting to sink in.
Maybe being a two time tax cheat's bitch isn't such a hot idea after all. Rather than have their business practices dictated to them from Capitol Hill and the Oval Office, it’s encouraging to see United Bankshares and Bridge Bancorp go it on their own. How very individualistic… how very American.
A corporate jet for Mr. Adams and a fat bonus as well.
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2 comments:
I think you're absolutely right - these banks don't want the government pushing them around.
Well put... I have my own bucket and can carry my own water. No Thankyou Mr Mephistopheles, I believe there may be strings attached....including my soul.
'Dawg
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