Photo: The Last Days Of Lehman Brothers
Here’s something that will infuriate more than a few of you: the US goverment is the biggest fee payer to investment banks this year.Meaning taxpayers are a big part of why Wall Street is in business right now.
U.S. government has been the biggest fee payer to global investment banks in the first nine months of 2010.
Remember that $1 billion profit on TARP everyone on Wall Street likes to remind us of whenever taxpayers complain about the bailout?
The United States shelled out $1.15 billion in fees, mostly on bond offerings by the government-run mortgage companies Fannie Mae and Freddie Mac.
So that just vanished.
And here’s why it should really piss non-Wall Streeters off. Even though taxpayers’s $1.15 billion made the biggest contribution to banks’ fees, banks made much more off fees in total.
[Investment banks around the world collected] nearly $58 billion in fees in the first nine months of the year.
So taxpayers’ contribution, though huge, is a tiny fraction of their total take home. In other words, they’re nothing to them. Now we finally have a good and simple explanation of why everyone hates Wall Street (taxpayers pay them more than anyone else) and why they don’t care about taxpayers. Numbers.