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"The Rake" - An Unparalleled Transfer Of Wealth To The Managerial Class

• https://www.zerohedge.com by Ben Hunt

But what if the dealer started taking 18-25% out of every pot as his rake? Would you notice then?

That's what JP Morgan management does with its "return of shareholder capital" through stock buybacks.

"I would've said, 'Look I know you think that I may be overpaid but I do point out that others have shared in the wealth," the "Mad Money" host says.

In 2018, JP Morgan bought back 181.5 million shares of stock for $20 billion. Also in 2018, JP Morgan issued 32 million new shares to management (18% of buyback). Those newly issued shares were worth $3.5 billion then, and are worth $4.2 billion today.

In 2017, JP Morgan bought back 166.6 million shares of stock for $15.4 billion. Also in 2017, JP Morgan issued 31 million new shares to management (18% of buyback). Those newly issued shares were worth $2.9 billion then, and are worth $4.03 billion today.


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