Friday, October 31, 2008

Oh, good: it's almost official now

Economy shrinks in 3Q, signaling recession

Meanwhile: Exxon Mobil posts biggest US quarterly profit ever

... and let's not forget the other good news:
Beaten down, American consumers burrow deeper

And the so-called bail-out?
Report: Banks continue paying dividends after receiving bailout money
"... "The 33 banks signed up so far plan to pay shareholders about $7 billion this quarter," the paper adds. "Companies generally try to pay consistent dividends and, at the present pace, those dividends will consume 52% of the Treasury's investment over the initial three-year term."
Paying dividends??? 52% of the bail-out money??? Ah, yes - our MBA President at work!
[Note: I've chosen to cite USA Today version of the story, rather than the original from The Washington Post. The reason? WaPo requires registration (free) to read article online - I wanted to make it as easy as possible for AQA readers by not sending you all to WaPo's sing-in/sign-up page.]

The Post notes further (as reported in USA Today) that:
"... The Treasury's approach contrasts with decisions by foreign governments, including Britain and Germany, to require banks that accept public investments to suspend dividend payments until the government is repaid."
W's wisdom.

Question: Does U.S. Govt get dividend payments like all other shareholders?

Have a nice day.

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