Wednesday, December 16, 2009

Wells Fargo Free of US Government Control?

This is perhaps another indication that the economic recession is going to finish in 2010. In 2008, we saw that the banks were the hardest hit in US economy from the recession. A lot of criticisms were raised against the high officials of the banks and as a result, some of the leading banks in U.S.A had to borrow billions of dollars from US government. Now, most of them are paying the money back and the latest is Wells Fargo. It received huge amount of money. Now, it is going to give back around $25 billion.
This is a lot of money and the bank is planning that they would raise $10 billion from new shares and rest of the money they would get by selling wealth. This will make the bankers happy because the high officials of Wells Fargo will be now free from US government control. They can now easily decide on bonuses and other attractive packages for their decision makers. Specially, it is a time of Christmas and this time, I think that they will not suffer any negative criticism in the media.

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