"State Street didn't need the cash.... State Street yesterday released results for the three months ended Sept. 30, a mixed period in which the firm's profit surged 33 percent, to $477 million. Revenue was also up, to $2.8 billion"
Also see: Healthy Banks to Get Bailout Bill Loot
But they can't buy your home for you, 'murkn?
"A call to aid the financial system; State Street's Logue surprised but ready" by Ross Kerber, Globe Staff | October 16, 2008
For State Street, the government would provide $2 billion in capital, receive 2 million shares of preferred stock, paying a 5 percent dividend, and warrants for common stock. Other terms were equally reasonable, chief executive Ronald Logue felt....
It was a watershed moment. Logue said, at the time, he was instead struck by the plain terms of Paulson's offer. It was, he said, "absolutely cheap money." Even though State Street didn't need the cash, he said, "From an economic point of view, it's a great deal." His board agreed and authorized Logue to sign on.
Yeah, getting money you don't need always is!
Logue's recollections came as State Street yesterday released results for the three months ended Sept. 30, a mixed period in which the firm's profit surged 33 percent, to $477 million. Revenue was also up, to $2.8 billion from $2.2 billion a year ago.
Banking analyst Nancy Bush said she didn't find the results encouraging, but added State Street was not in any need of the government infusion of capital.
But they are GONNA GET IT ANYWAY!! This is what YOUR TAXPAYER-FUNDED "BAILOUT" is paying for, 'murka!
On Sunday afternoon, Logue was settling in to watch the New England Patriots on TV when Paulson called. Paulson gave no inkling of what was to come, so with nothing specific to prepare for, Logue said he "unfortunately" endured the San Diego Chargers 30-10 drubbing of the Pats.
??! WTF? Who cares?
Some of the other executives in the meeting balked at Paulson's proposal, according to news accounts. These accounts also said Paulson made it clear the government was making an offer they could not refuse.
This actually causes me pain, the fleecing of the American people here.
Logue declined to discuss some of the particulars. But he did say he expected State Street to buy back the government's stake before the dividend rate rises to 9 percent, after the initial five-year investment period. Logue also said the Treasury's requirement that companies accept restrictions on executive compensation was "fair." State Street is studying how that would affect his compensation, worth $28.3 million last year. --more--"
How about not at all?
"Some said the government's restrictions on companies that accept government funding may be ineffective, and that Treasury Secretary Henry Paulson will not aggressively enforce the rules"
