Have you noticed the primary reason that banks are in such a hurry to payback the government? It isn’t that the banks are healthy, it isn’t that the toxic assets are gone and it isn’t that they have their bank depositors' and creditors' financial security at heart. It is to rid themselves of the “bonus” restrictions. They, the top executives, want their big bonuses and they can’t have them until they rid themselves of government restrictions. So, they’re in a rush to payback the bailout money.
The only way a bank can afford to pay big bonuses to its executives is to scam its depositors and creditors through transaction and membership fees, high credit interest rates and low savings rates. Those fees and interest manipulation is also the source, the only source, banks use to pay dividends to stock holders. Depositors and creditors, the primary source of money for banks, are the last people these banks think of. In other words; it’s all a scam.
If I were doing business with these banks, I would take my money someplace else. There are honest banks out there and the more honest they are the more you will make on your savings account and the less interest you will pay on your credit card. Any bank that gives its executives big bonuses, bigger than the salary they make, is being dishonest with you and your money.
It is interesting that CitiBank cannot yet return its bailout and, since it can’t pay big bonuses, it finds itself at a disadvantage in its ability to hire top-notch executives. The truth is that the playing field should be leveled by restricting compensation across the industry whether the bank received bailout or not. That would remove the crooks from the banking industry. But, that won’t happen, so the alternative is that “people,” you and me, need to be more selective in the banks we choose to do business with. Don’t do business with a bank that’s ripping you off with big bonuses and compensation packages.