Ugh, another “you get a check!” teaser pitch… these are everywhere nowadays, and they’re getting a little tiresome.
But still, we aim to please… and readers are asking, so let’s get to answering.
The ad this time around is from one of the Casey Research newsletters, E.B. Tucker’s Casey Strategic Investor ($99/yr), and this is part of the headline:
“In 2008 taxpayer funds were abused by the bank bailout.
“Now Bill S.2155 opens the door to dispersal of ‘compensation funds’ to anyone who claims them.
“$195 Billion in ‘Bailout Compensation Checks’ Being Paid Out Now. Claim Yours.
“‘They fixed it, or at least have gone a long way toward fixing it.’ President Trump’s remarks regarding Bill S.2155
“Anyone can receive this money. Some people are paid $8,979… $9,587… and $15,111 on a regular basis. Discover how you can receive this income too….”
This is a tease about the smaller banks who, thanks to that bill mentioned, are getting a bit of a break from the Dodd-Frank regulations so they can have a bit more flexibility than the “too big to fail” banks whose collapse could (and almost did) destroy the global economy.
They’re not technically lying (most big publishers have had their run-ins with the law, they are careful to run promos by their lawyers), but let’s say that they’re not emphasizing the truth very much. I skipped about halfway through the ad, most of which is angry commentary about how awful the big banks were, all designed to get you incensed and put you in a frame of mind to say, “hey, yeah, I bet I DESERVE some free money!”
And then started to get into the details of what they’re talking about with these “Bailout Compensation Checks” — we know it’s not going to be a “you get free money” check, but what are they talking about?
“CNN Money says banks have more cash than they know what to do with nowadays.
“And unlike the stingy mega-banks…
“Their fast-growing competitors are passing that cash on to you through fatter dividend payouts.
“This is why we’re looking at this as President Trump’s back-door approach to compensate Americans for what happened in 2008.
“It’s also why my team calls these payouts ‘bailout comp checks.'”
So that word, “dividend,” close to halfway through the loooooong ad, is the first indication that this is an investment they’re talking about… not just a “program” that you can “enroll in” or “sign up” to receive “bailout compensation.”
But quick, we have to get back to big dollar numbers to ramp your greed back up… so we go right into the list of “checks” people are receiving:
“It’s estimated about $195 billion will be paid out this year alone.
“Just like at the size of some of these “bailout comp checks”…
“$18,815 paid to Thomas J.
“$18,530 paid to Scott J.Are you getting our free Daily Update
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“$19,706 paid to Glenn M.
“$21,376 paid to Margaret K.
“$28,311 paid to Brian D.
“$40,806 paid to William H.”
And then, finally, the first clear statement of the ad… which comes 20 pages into the 43 page transcript:
“Depending on the size of your investment, it’s possible you could even cash a check in the amount of $65,372 just like Craig D. does.”
So we’ll emphasize that part, since they didn’t:
“Depending on the size of your investment”
So yes, I’ll bet that whole list of names is dominated by executives and board members of banks, who have very large shareholdings and therefore get large dividend checks. But let’s get into the details and see what other info we can uncover:
“There are dozens of banks paying these “bailout comp checks” to investors.
“But rather than tossing names at you, I analyzed this sector and found the best two for you.
“I picked them based on the following criteria:
“Ideally, they should have around $20 billion in assets. This is the sweet spot to benefit from the new law change.
“These are strong, healthy companies that are acquiring smaller banks.
“Their bottom-lines are booming—so the size of your ‘bailout comp checks’ will grow over time.
“And since they’re doing so well, you could more than double your money on their stock price!”
OK, so that’s their criteria for buying these banks… which ones are they hinting at?
Here’s the first bit of clues:
“Your 1st Source for Bailout Comp Checks:
“This bank is the strongest financially I found. While other banks were languishing under the bailout and the subsequent Dodd-Frank bill…
“This bank’s share price steadily climbed….
“… the CEO… Currently, he owns $43 million in company stock….
“Since 2010, his bank has acquired 15 banks.
“This grew their assets from $3 billion to $21 billion.”
And he also says that the bank’s net interest margin (which is the difference between what they earn by lending and what they have to pay for deposits or other funding) is 50% higher than its peers.
And, of course, “insiders are raking in piles of cash” with this one… for example: