Does anyone else find it ironic that on the day that Citibank announces $3.3 billion in profit that the State of Delaware hands them $3.4 million? Alan Levin, DEDO Director, says that it makes no sense to hold onto cash in the Strategic Fund, that it ought to be used. Is Citibank going to use these funds? According to Yahoo Finance, Citibank has $450 billion dollars already on its balance sheet.
So, our wizened leaders in Dover remove $3.4 million from the local economy through taxes (OK, since 50% of our taxes come from out of State, call it $1.7 million). They take this money and put it in the “Strategic Fund”. Then they give this money to a company that already has $450 billion in cash (and another $330 billion in short-term investments) fundamentally removing it from the local economy. Our local generosity added 0.00076% to Citi’s cash balance.
$1.7 million from the local economy onto the balance sheet of a too-big-too-fail bank whose stock price is down over 6% over the trailing 12 months. Now that’s an investment.