Talk about spreading the wealth...to the rich.
Lazear and other officials also sought to defend their handling of the bailout so far, responding to reports in The Washington Post that banks receiving money from the Treasury will be allowed to make dividend payments to shareholders and that officials are considering federal guarantees for as much as $600 billion in distressed mortgages.Making money remains to be seen but the bigger problem here is not what is legal, but what is acceptable. Giving taxpayer cash to fund dividends is rubbish. That is hardly the reason why we're injecting the cash so to throw legal BS out there does nothing to address the already simmering hostility to the rescue plan.
During a media briefing, Lazear emphasized that the bailout legislation does not bar participating banks from continuing to pay dividends at current levels.
"The law was quite specific on what rules to follow," Lazear said. ". . . We're going to follow the law and make sure there are not abuses, but we want to make sure we get the economy going."
On the overall $700 billion bailout plan, Lazear said: "Taxpayers will not lose significantly on this and may make some money."
