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.
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!
ReplyDeletehttp://www.cbsnews.com/news/keep-an-eye-out-for-a-blue-moon-on-friday/