For the past 100 years or so the Federal Reserve has mandated that its member banks subscribe to “stock” in an amount equal to 6 percent of their capital and surplus. The banks have to pay half that amount upon becoming a member; the other half is subject to being called upon. The Fed pays these 'stockholders' a 6% dividend every year. If the bank joined the Fed prior to March 28, 1942, the dividends are tax-free.
Now Congress has proposed that the dividend be lowered to 1.5% for banks with $1 billion or more in assets. The lowering of the dividend would be used to fix the highways.
I'm really surprised Congress would propose such a sensible plan.
1 comment:
Oh, now, you're way too cynical. Surely, by the Law of Averages they must get something right at least once every blue moon. And, coincidentally, there's one due on Friday!
http://www.cbsnews.com/news/keep-an-eye-out-for-a-blue-moon-on-friday/
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