Is it a sign of things turning around or is it just a way for Corporate America to free themselves from government restrictions?
Bank of America is set to repay the $45 billion it owes taxpayers – bail-out money that it received from the US government – in the next few days.
A great motivation for bank officials to repay the government as soon as possible is to free themselves from restrictions such as the salary and bonus caps.
AIG sparked a huge controversy after handing out millions in bonuses despite receiving bailout money from the government. This prompted the administration to put a cap on compenstaion of executives of companies bailed out by the government.
The bank will be using its available cash and securities to put up the money needed to repay the taxpayers. It received a $1 billion net loss from July to September.
Source: BBC
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Tags: Bail-Out, Bailout, Bank of America, Recession