Bank executives at Wells Fargo, Bank of America and JP Morgan Chase are benefiting financially from the deaths of their employees, according to a shocking report in The Wall Street Journal.
What they've done is to take out life insurance on their rank and file. This insurance is used as a tax dodge and it pays bonuses to their key executives when an employee dies.
Worse still, American taxpayers subsidize this special tax break that funnels tax-free income to the big cheeses that are named as the beneficiaries. This should be a criminal act of tax evasion, according to Clark.
The Wall Street Journal reports that Bank of America and Wells Fargo both have $17 billion each in these life insurance policies. Chase has $11 billion.
So if an underling dies, do they have a party to celebrate the money they make? The employee's family gets nothing, not a cent.
Last week, there was proposal to take away this tax deduction. That's too little, too late. It should be a criminal offense. Period.
In one recent court case centering on this controversial policy, a former bank employee died after being fired. Then a check showed up at his residence for $1.6 million. But the check was made out to the bank, not the late employee's widow. It turns out the insurance company mis-mailed it!!
Disgusting, reprehensible and unacceptable, according to Clark. The giant banks must be dismantled. We need a serious anti-trust law here.
Wednesday, May 20, 2009
Posted by Hoots at 8:10 PM