Saturday, February 14, 2009

"Walk the Walk" Watch: Are bank CEOs investing their own money in the banks they run?

Are the chief executive officers of major banks investing their own money in their companies alongside the massive infusion of capital from the taxpayers? For the most part, they're not. In his Moneybox column today on, Daniel Gross writes about "the spectacle of eight bank CEOs filing into a House committee room on Wednesday to describe precisely what taxpayers are getting for the hundreds of billions of dollars they've pumped into the financial system...

"Rep. Gary Ackerman, D-N.Y., noting that the government had injected $165 billion into the eight banks represented at the hearing, asked how much each CEO had invested in his company in the past six months. 'And zero is a number,' he said. For five, zero was the number. JPMorgan Chase CEO James Dimon and Citi CEO Vikram Pandit noted that they had put $12 million and $8.4 million into their respective companies. Ken Lewis, CEO of Bank of America, recalled that he bought 400,000 shares but couldn't remember the dollar value of the purchase."

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