This is a joke! The auto industry executives have been vilified and humiliated by Congress and the media for asking for $25 billion in government aid. The financial industry, meanwhile, has been receiving $1 billion dollar bills left and right, with seemingly little oversight, and now we are told by The Wall Street Journal that Bank of America (BAC) (which has already received $25 billion) will get billions more because fourth-quarter losses at Merrill Lynch (MER) threatened their ability to close on the deal.
The deal was valued at $50 billion when announced and ended up being valued at $18-19 billion when closed. Most times in a takeover, if the company being acquired has material losses prior to closing, the buyer lowers the price! John Thain deserves every bit of the $10 million dollar bonus he requested from his board of directors.
BAC stock is being punished today, down more than 20% to $8.03. Citigroup (C) is also suffering, down another 19% to $3.66. Auto industry executives would be right if they asked, “You think our business model is flawed?”
–Steve Claussen
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The action taken to local and national disasters is awesome but it’s a damn shame that so many citizens take advantage of the sad situations.
I mean everytime there is an earthquake, a flood, an oil spill – there’s always a group of heartless people who rip off tax payers.
This is in response to reading that 4 of Oprah Winfreys “angels” got busted ripping off the system. Shame on them!
http://www.cbsnews.com/blogs/2009/08/19/crimesider/entry5251471.shtml