After Congress passed a law removing $7 billion in pointless public subsidies for the biggest banks, Wall Street’s top lobbyist just claimed banks have a constitutional right to that free public money. Seriously.
For years, banks have gotten a guaranteed 6% dividend on stock they own in the Federal Reserve, rain or shine.
That means they make their money back over and over – in addition to all the huge benefits they get from being a member bank in the Federal Reserve system.
What makes this even more spectacular for the banks — and more ridiculous for the public — is that it’s completely risk free for the banks! Even if the Fed disbanded they would get all their money back.
Democrats and Republicans agreed to repeal this wasteful subsidy and redirect the $7 billion over the next 10 years to the federal highway trust fund instead.
But Wall Street isn’t happy about losing all this free money.
The country’s top bank lobbyist, Rob Nichols at the American Banking Association, wrote a letter to the Federal Reserve saying banks are constitutionally “entitled” to this public money – and essentially threatened to sue if the Fed finalizes the rule.
Sign the petition to tell the Federal Reserve: Ignore Wall Street’s ridiculous claim – and end the $7 billion public subsidy to the biggest banks!