Now Let Us Admire the Clever Way in Which Bank of America Has Screwed Taxpayers Again

[TwixVoy]

"A few media outlets cheered the announcement that Bank of America was repaying its $45 billion of bailout money ahead of time. Bank of America is now obviously healthy again, so it's time to celebrate, right?

Well, no.

The main reason Bank of America paid back the money was to get out from under the onerous pay caps that makes it harder to keep its people and attract a new CEO. To make the payment, Bank of America had to take huge dilution at what a year ago would have been considered an appalling price. Bank of America may be healthier than it was 9 months ago (maybe), but shareholders certainly didn't consider selling $19 billion of equity at $15 a share cause for celebration.

But aren't taxpayers better off now that Bank of America has paid us back?

Not if you thought the control and pay restrictions TARP provided were a good thing."

More: http://finance.yahoo.com/tech-ticker;_ylt=At5PGDzjO6_Gzeo1JzIrrHZl7ot4;_ylu=X3oDMTEwbDNvam4wBHBvcwMzMgRzZWMDdG9wTmF2BHNsawN0ZWNodGlja2Vy

[dmallind]

1. Can't please some people

Bad idea to give them money. Bad idea if they pay it back.