Republicans to Eliminate Billions in Wall Street Subsidies to Fund Repair of Highways

Republicans to Eliminate Billions in Wall Street Subsidies to Fund Repair of Highways

There’s is a proposal in Washington to cut a subsidy given to Wall Street banks in order to fix our roads. Wall Street isn’t thrilled

Republicans to Eliminate Billions in Wall Street Subsidies to Fund Repair of Highways

At stake is an annual dividend of 6 percent the banks receive from the Federal Reserve, which totals less than $350 million apiece for JPMorgan Chase & Co., Bank of America Corp., Citigroup Inc. and Wells Fargo & Co. The Senate wants to cut the dividend and use the money to help pay for a highway funding bill.

The threat of losing it became more serious last week when Senate Majority Leader Mitch McConnell told bank executives at a private meeting in Washington that there was no way he would remove the provision that reduces the dividend to 1.5 percent for banks with more than $1 billion of assets. House members now have to decide by month’s end whether to back the Senate’s approach before highway funding expires.

I don’t know, I’m torn here. I’m not going to lose sleep over Wall Street having some of their corporate welfare cut. However I do understand the concern over the precedence this sets, because we all know how Washington works.

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