How a $50 billion bank bailout helped the rich more than the middle class: Data analysis firm shows
Analysts at Data Analysis Inc. said they’ve found evidence of an income inequality gap between wealthy Americans and the middle classes in their analysis of the 2009 bailout of Countrywide Financial Corp., and that the bailout helped people like the president, a former hedge fund manager, get richer.
The data firm analyzed data from the Federal Reserve’s Survey of Consumer Finances (SCF) data and compared it to data from a series of other sources including census data, tax records, and business records.
Countrywide’s stock value was at its peak in 2009, and the firm found that median income of its wealthiest clients, based on Census Bureau data, was $5.5 million in 2010, compared to $3.6 million for their poorest clients, according to the SCF.
CountryWide, which is a subsidiary of Bank of America, was the largest Fannie Mae and Freddie Mac bailout recipient, and it’s one of the biggest U.S. banks to bail out in recent years.
The SCF data show that, on average, wealthy Americans were earning more than their poorer counterparts in 2010 — with the wealthiest 5 percent earning more, on the order of $30 million, while the poorest 10 percent earned less.
The median income for the middle and lower classes was $16,700 in 2010.
However, Countrywide didn’t take into account the tax impacts of its bailout on its financials.
Country Wide executives claimed at the time that the bank would create jobs and bring the economy back to normal by the end of 2010.
The bank’s CEO told the press that the “bank was a good example of how we could help those who needed it most.”
In 2011, Country Wide CEO Greg Smith acknowledged that the financial crisis “had caused a very significant economic downturn.”
The company announced that it would be returning $25 billion to the American public through a $2.1 billion bond issue.
In 2016, Smith said that Countrywide would be able to return $10 billion to its investors.
He said that he hoped the bailout would help the bank to “reduce our tax burden and our costs.”
The bank had received $20 billion in taxpayer bailouts in the previous decade, according the SCS data.
A 2016 report from the Committee for a Responsible Federal Budget found that taxpayers will be forced to shell out $2 trillion more in taxes over the next decade because of the crisis.
That’s nearly $1,000 per person, according for every person in the country.
But the report also found that there is no evidence that the federal government is doing enough to help the poor, which would help explain why the Bush-era financial bailout has had so little impact on the economy.
The $50-billion bailout was one of a series that President Obama signed into law, providing $400 billion to help companies like Countrywide recover from the financial collapse.
But it did little to address the root causes of the economic crisis.
According to a new report by the Center for American Progress, more than a quarter of all taxpayers are being forced to pay higher taxes because of higher federal debt and higher interest payments on that debt.
The tax burden of the top 1 percent has grown by about $1 trillion over the past 20 years.
Taxpayers who made between $250,000 and $400,000 in 2009 are now paying an average of $3,500 more in federal taxes, according a report from American Action Forum.
Those in the middle income brackets are paying an additional $1.8 trillion in taxes.
The average income of Americans who make between $40,000 to $60,000 has also risen by about 8 percent since 2009, the Center found.