The Bank of America will pay the US government $45 billion, the money loaned to it under the Tarp bailout plan. The surprise announcement Wednesday 2 December provides some relief for the federal government, which has been criticized for using taxpayers’ money to keep banks alive, only to see them turn around and pay large bonuses as they return to profitability. Bank of America is looking for a new CEO, and observers say paying back the loan will allow it to offer a better pay package, with less government pressure, but it also makes the bank more vulnerable to risk.
Posted by Ellen Wallace on 3 December 2009 at 8:16 | permalink
This work by genevalunch.com is licensed under a Creative Commons Attribution-NonCommercial-NoDerivs 3.0 Unported.
News story, GenevaLunch, 3 December 2009.
Filed under: World news
Tags: Bank of America, bonuses, CEO, loan, pay, repay, TARP, US government
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