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Surprise: Wall Street May Refuse Bailout Money

By Selwyn Duke

You probably didn’t see this one coming, but many Wall Street banks and financial firms may actually refuse to accept the taxpayer funds the government is shoveling its way.  It may seem counterintuitive, but the Guardian.co.uk tells us:

Fears are mounting that many Wall Street banks and financial firms will
refuse to participate in the US government’s $700bn bail-out package,
leaving global markets and world economies in a perilous state for
months to come . . . .

. . . Wall Street analysts, believe the addition of so many terms to the bill might deter potential participants.

One
of the least attractive elements is a section designed to curb
executive pay at banks that participate in the bail-out package. These
include limiting stock-related pay and banning ‘golden parachutes’ for
executives.

There is an immutable rule of man’s nature that people don’t refuse free money, but leave it to our politicians to do the impossible.  I won’t complain, though, because I’m against this unconstitutional bailout.  I tend to believe that while we may derive some short-term benefit from it, over the long haul it will only exacerbate our problems.

Anyway, one would hope that most of Wall Street would refuse the money.  But, even if it does, does anyone want to bet that the government won’t find a different way to waste it?

Read the rest here.

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6 responses to “Surprise: Wall Street May Refuse Bailout Money”

  1. Vivienne Avatar
    Vivienne

    Nothing could restore confidence in our markets more then if Wall Street resolved their own problems.
    As for the $700 billion fed price tag – Don’t we know already know that’s going into Goldman Sachs’ coffers. Look how many of their execs are heading up this “rescue” operations – coincidence or conflict? Either way not a good sign for the US taxpayer.

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  2. freebie market Avatar
    freebie market

    Wall Street guys refusing the bailout? And the guy in the hood, with a bandanna over his face, is going to refuse money at the 7-11! You’ve got to be kidding or asleep. The only difference between the two is, the guy on Wall Street has been to college and raised to believe he has the right to steal. At least the common sick-up man doesn’t believe he’s entitled to the cash in the drawer; giving him the moral high ground, in contrast the guy in the suit with his hand in your pocket…smiling.

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  3. R.R. Avatar
    R.R.

    There are individuals who are responsible for the collapse of the American economy. Are these individuals going to be held accountable for their misdeeds? Are they going to pay for their crimes? Are their victims going to be made whole? Well you can bet the answers are no, no and no!
    The notion of the buck stopping anywhere has passed. Like in the Abu Ghraib Prison scandal, maybe some Wall Street janitor will get sentenced to ten years. But, you can bet all the suits are going home to Connecticut with a smile and brief case full of cash and will be back on the street the next day with a new way to steal.
    God Bless the United States! (We’re going to need the help.)

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  4. Walt Avatar
    Walt

    Lets hope the guilty pay. I would not hold your breath. We need to start with Dodd, Frank and Obama, they are the ones who lit the fuse. We also need to take note of those who warned of the sub-prime timebomb. Bush, McCain and Clinton. This is not at all “W’s” resession. This resession is the result of socialisim stired into the capitalist pot. The liberal members of our gov’t encouraged and in cases forced lenders to depart from the tennents of good lending in order to be nice and “fair” to those who had no record of responsibility nor the means to satisfy their obligations. Where are the adults???

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  5. W. Tieff Avatar
    W. Tieff

    Clearly, the adults are too greedy and are trying to pamper the children…… an old story, really. Hopefully, us children will at least inherit some meaningful principles and values, to counter the bad habits that have been so profoundly exhibited.

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  6. John Smith Avatar
    John Smith

    Walt,
    Okay times are bad. You take your Rolex President to the pawn shop for some bridge money. The watch is worth about $14,000. You expect only $2000 from the kindly pawnbroker. You know you can pay that back and redeem your watch, no problem!
    But you know what? Smiling big, the friendly guy behind the cage gives you $4000. Man, are you pleased! So, by the way, is the Shylock. He knows that if you’ll settle for 2K you can pay back and he gives you 4K, chances are in his favor that you won’t be able to pay back the $4000 and he has quick realized a $10,000 gain.
    Now I didn’t make this up. A pawn shop owner told me that he does it all the time.
    So my friend, who is “depart[ing] from the tennents [sic] of good lending in order to be nice and ‘fair,” in that scenario? Sound a little like the sub-prime scams?

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