Wall Street Firms Make $1 Billion, Charging Higher Fees For Obama's 'Build America' Bonds

wsj.com:

Wall Street firms have received fees exceeding $1 billion in less than a year selling "Build America Bonds" meant to spur jobs in struggling cities, often charging municipalities higher costs than for traditional bond deals.

Read the whole story: wsj.com

Comments

[MCTSilverlakeCA]

02:48 AM on 03/11/2010

Yes, I saw the local bank selling those Bonds for America at nearly double the rate that they charged for their own "recommended investment bonds", bonds that only benefit more banking industrial causes, i'e. put more money in our bank, so we can take it out of your pocket permanently". "Don't invest in America, we're already in the process of destroying that... so don't waste your money there.".

I was actually told by one bank manger that he didn't have, and wouldn't be able to get, any of those "Build America" Bonds, because his bank didn't feel they were worth anything... I then suggested to him that his bank was worth the same. Nothing.

[MCTSilverlakeCA]

02:44 AM on 03/11/2010

I think it's time that the American People FORECLOSE on the Banks, and forcibly remove their funds to the tune of the entire amount lost -- not just the $740 billions we gave them, but also the first $740 billion they lost that required the bailout $740 billion to dig them out of it...

So we lose a few banks... maybe even 80% of them.... I tend to think that Savings and Loans are better at it anyway, they have the right idea... Invest in America, not in your own selfish greed. So a few thousands banking executives get to live in homeless shelters, give up their 10 bedroom McMansions and all the accouterments that extreme wealth can buy... let them find food at local foodbanks in bad neighborhoods where you fear even to park your car to get a bag of groceries, let them stand in line in the rain and cold trying to get a job, let them give up their chocolate latte's, their Prada handbags, their Cadillac SUV's, their daughters ballet lessons, their son's private tennis coach, let them eat... cake, like we do...every day... day old cake from thrift bakeries, let them give up Pepsi and drink Koolaid, let them starve and complain of the cold streets at night, where no one cares, while the Government only offers beds and food to drug addicts ahead of those who kept themselves clean ...

[Voting citizen]

10:26 AM on 03/11/2010

I agree. Move you money support your community. Even if you loose a little more your community would start thriving. Instead of supporting their community (wallet size community at that) support your own. Is it possible to sue these banks for gross negligence? Can you imagine what chaos there would be if everyone moved their money then sued them for negligence? I would like to witness that happening. The title of the article..."(name of bank) one million law suits for gross negligence" may keep them busy for a little while.

[WIpatriot]

07:26 PM on 03/10/2010

Wait 'til Cap'n Trade comes out.

[menlopian]

06:06 PM on 03/10/2010

Simple: don't like it, sell them your own damned self.

[Voting citizen]

05:44 PM on 03/10/2010

Lets see...As of July 09 the population of America was 307,006,550.

If our representatives would have given every citizen a million dollars instead of giving it to the greedy banks some things that would be different today are....no one would loose their house, boat loads of money would have gone to savings accounts, boat loads of money would be spent on shopping sprees. People that couldn't go to college before, would have. Our seniors wouldn't be starving, homelessness would be no longer an issue and medical insurance could be paid. Travel industry would be booming, car industries would be booming, family business would be surviving. Families would thrive, cities would thrive, shopping would thrive, and the government would have saved billions of dollars. I don't know what would have been the smarter move. There seems to be no end to the greed of these people.

[loki]

01:45 AM on 03/11/2010

Psalm 10

v1 LORD, why are you standing so far away?
Why do you hide when there is trouble?

v2 In his pride the wicked man tries to catch helpless people.
I hope that wicked people catch themselves with their bad plans!

v3 The wicked boasts about what he wants.
He says good things about those that want more than is fair.
He says very bad things about the LORD.

v4 In his pride, the wicked does not look for God.
He will not even think of God.

v5 Everything that the wicked does always works well.
He puts the rules of God far from him.
He laughs at the people that do not like him.

v6 He says to himself, "There will be no trouble for me.
Nothing bad will ever happen to me or to my children".

v7 His mouth makes bad promises.
It is full of words that are not true.
He says that he will do very bad things to people.
There is evil on his tongue.

v8 He hides behind the bushes near the villages.
He watches in secret for people to hurt.
He jumps out and murders people that have done nothing wrong.

v9 He lies like a lion under the cover of a bush.
He waits to catch someone that is helpless.
He does catch him and takes him away in his net.

v10 He beats the helpless man.
The helpless man fails and falls under the stronger man.

[loki]

01:46 AM on 03/11/2010

v11 He says to himself, "God forgot.
He hid his face. He never saw what happened".

v12 Rise up, O God! Lift up your hand.
Do not forget the helpless people.

v13 Why does the wicked man say such bad things about God?
Why does he think, 'God will not do anything about it?'

v14 See it all, God, all the trouble,
all the oppressed people.
Decide what to do about it.
The helpless puts his trust in you.
You give help to the fatherless.

v15 The arm of the wicked and evil man . . . break it (LORD)!
Tell him to explain what he has done.
He thought that you would not discover it!

v16 The LORD will always be king.
The nations will not remain in his land for evermore.

v17 You hear, LORD, what oppressed people want.
You listen when they pray. You give them something to hope for.

v18 You care for the fatherless and the oppressed.
People from the earth will not frighten the poor again.

[CampCalifornia]

02:48 PM on 03/10/2010

Is there any doubt where Obama's allegiances lie?

Obama, of the corporation, by the corporation and for the corporation.

[MCTSilverlakeCA]

02:33 AM on 03/11/2010

Dick Cheney, George Bush (both of them), John McCain, Alliance for War Mongering and War Munitions and Strategic Reserve Oil Companies profits - is there any wonder whose side THEY get their money from?

[edwcorey]

02:22 PM on 03/10/2010

America is a community of parasites. Disease-bearing parasites.

[measie]

01:59 PM on 03/10/2010

Another "bad Obama" headline.

[foodchain11]

02:27 PM on 03/10/2010

Another bad Wall ST headline

[lightningbolt]

01:24 PM on 03/10/2010

This is a scam. The government is borrowing money from the very banks it bailed out and is paying interest on that debt. We must purge the bankers from our government before they destroy everything.

[martin2]

01:13 PM on 03/10/2010

The Fed should lend or local governments money at 0% cutting out the Crooked Bankers.
Why don't they?

[basenji]

12:50 PM on 03/10/2010

It's foolish of the government that instead of selling it directly to consumers through a simple ad campaign they went to the THIEVES on Wall Street to get this done. It could've been a Treasury Direct type of operation.

[Johnathan Plate]

12:55 PM on 03/10/2010

If we didn't give wall street their cut that would make us socialist?

[Johnathan Plate]

12:50 PM on 03/10/2010

Lets see if we can figure this one out together.

The WSJ prime rate is 3.25% which is what a good business can barrow money at
The rate on rebuild america bonds are between 4.75% and 5.5% of which the american tax payer is footing 35% of the intrest cost which get the's barrower cost on the most expensive issues down to 4.07%
The feds discount rate, which all of these underwriters are barrowing money at is currently 0.75%

so adding up the total of the chart of the 10 largest bonds issued, i get 21.51 billion.
so I know math is hard so here it is:
21 billion at 4.47 is a little over 1 billion dollars
it only cost the bank 161 million to barrow the money from the fed.
So if i get this right the banks are able to make at least a little under 1 billion dollars, if they keep that debt on their books.

But it cost american tax payers almost 286 million in backing up the the local goverments

but on top of that the banks get to add a fee, of 5-11 dollars per thousand to package and sell so that is another. 150 million dollars.

wow the headline is correct the banks are making a little over 1 billion dollars off this!
and why do local goverment not get the prime rate again?

[Johnathan Plate]

12:53 PM on 03/10/2010

I feel dirty, I agree with chuck grassley. They need to stop this and fast.

[Jannsmoor]

11:33 AM on 03/10/2010

Can someone explain to me why the federal government lends money to Wall Street at 0% interest, but municipalities and States have to pay market rates?

[Johnathan Plate]

12:57 PM on 03/10/2010

No local goverments are paying somewhere between prime + 1.75% or 2.5%
I am sure their is some reason for this.

I know Tea baggers don't want to pay taxes and banks are afraid they would limit the local goverment from taxing people to pay off the bonds.

[lightningbolt]

01:24 PM on 03/10/2010

The bankers own the government and their mission is to divert as many tax dollars to their own pockets as they can.