For those who opposed the massive bailout, a report in the New York Times may be little surprise. A reporter was able to get into a telephone conference call with JPMorgan Chase to hear executives discuss the $25 billion it received from Congress. Just four days after the bailout, JPMorgan Chase’s chief executive, Jamie Dimon held the conference call during which an executive admitted that Chase has no intention to use the money to make new loans but instead will use it to try to take over other companies.
The critical moment on the Oct. 17th call came when someone asked “Chase recently received $25 billion in federal funding. What effect will that have on the business side and will it change our strategic lending policy?”
Here is the response:
“Twenty-five billion dollars is obviously going to help the folks who are struggling more than Chase. What we do think it will help us do is perhaps be a little bit more active on the acquisition side or opportunistic side for some banks who are still struggling. And I would not assume that we are done on the acquisition side just because of the Washington Mutual and Bear Stearns mergers. I think there are going to be some great opportunities for us to grow in this environment, and I think we have an opportunity to use that $25 billion in that way and obviously depending on whether recession turns into depression or what happens in the future, you know, we have that as a backstop.”
I feel much better.
For the full story, click here.
And whose fault is this? Don’t blame chanse. It’s like giving your house keys to a meth addict then being surprised when all your electronics are stolen.
What we need is to get some politicians who can remember that our gov is for the people by the people not to give away the people hard earned $$$.
I think everyone has forgotten that the majority of G.W. Bushs’ presidency was with a democratic Congress. The same Congress that has consistently looked the other way while innocent taxpayers get beat up by big business. Even today, with a Democratic President, Congress is still looking away. Even worse, they are kicking us while we are down. I am not blaming Democrats, not at all. I am blaming the corrupted politicians that keep getting elected and keep beating us up. It is time that the entire Congress be swapped out for representatives that are for the people, not for themselves. Although I do not have the faith to say that they exist, something needs to be done. The large companies that took billions of money from US and then used it to make money instead of what it was originally designed for are commiting crimes that the average American would be jailed for. Again, who is supposed to be guarding the cookie jar? Everyone has their hands in the jar and there are not even crumbs left for the rest of us. I believe the people need a bailout now and that companies like Chase should be left holding the bag. i don’t cry to the government when my investments suffer; I chalk it up to leason learned and drive on. When did we start throwing money at billion dollar companies that can’t mange their money?
Well JP Morgan Chase just charged me a $39 dollar late fee for paying late on my card (as they had moved the regular monthly payment date ahead one week) on top of a 14.95 payment by phone charge in addition to the usual 26.49% interest. How much in interest is JP Morgan Chase paying the US taxpayers? Politicians are certainly out of touch with the crap the regular guy has to put up with from these banks. I was sent recently a pre-screened unsecured personal loan offer from Brookwood Loans for 1 – $3,000 at APR 96% interest. Why don’t we make the US loans available to Chase for the same amount. That seems about fair. The opportunity has finally arrived for the government to stand up, and deal with these banks the way they’ve dealt with the taxpayers for decades. If the banks don’t like it – and don’t have real assets / currency to cover every penny of leveraged dollars, Obama could federally guarantee the banks depositors their money so as not to have a run on the bank – and then seize the bank, leaving all employees in their place. Then start creating legislation capping all the crappy things banks do. Don’t just give these thieves a ton of money.
NOT ONLY WILL IT BE USED FOR THAT…THEY ALSO ARE GIVING HUGE BONUSES TO EXECUTIVES.MILLIONS OF DOLLARS FOR NO REASON. LONG AFTER CHRISTMAS AND RIGHT AFTER THE BAILOUT. ARE TAX DOLLARS WAS GIVEN TO THEM TO GIVE EXECTUVIVES BONUSES. THAT IS NOT FAIR. GIVE US ARE TAX DOLLARS BACK. THAT IS A SURE WAY TO BOOST THE ECONOMY.DONT GIVE IT TO COMPANYS THAT ALREADY HAVE BILLIONS.
THE PEOPLE WHO ACTUALY WORK IN THE BANKS. (BRANCHES) DONT GET SHIT…THIS IS SO TYPICAL OF J P MORGAN…
For a bank that didn’t need the money, they sure are pushy wanting my payment. Now that they took 25 billion, Billion with a B, why don’t they use that money to help me. Where is my bailout. I’m the one that lost my job, another case of corporate out of touch with america.
New Yorker,
That is an interesting point. Banks have been making most of their credit card profits on fees and penalties for years now. Notice that Congress closed off some of this ability recently with legislation, but it will not take effect until 2010, allowing banks to get that last widdow’s mite as more and more borrowers default. Banks certainly are using the bailout money to buy out competitors, just as you said.
If you have time to write further anaylsis I’d like to hear it.
This goes way beyond failure to mitigate the losses on loans that have already gone south (for whatever reason). Chase is looking for any excuse to withdraw from commitments previously made to good credit risks, people who have used credit responsibly for years without problems, with sterling credit ratings, substantial incomes and all kinds of insurance, who they cannot hit up for late fees and penalty interest rates.
If you read the entire article Mr. Dimon is quoted as saying “We would think that loan volume will continue to go down as we continue to tighten credit to fully reflect the high cost of pricing on the loan side.” Does that perhaps mean the Fed has driven interest rates so low for non-defaulting borrowers that he simply can’t make as big a profit from lending safely as he can from eliminating the competition? That’s the way to turn recession into depression.
Bailout for banks aren’t helping me out. I called Chase today to try to get my interest rate lowered since all my other credit cards are doing it. But they refused saying my account was closed and if I hadn’t closed it when I did it would have went to 17.99% from the 8.99 that it is today..And that I couldn’t reopen it because it had been closed past the 90 days. And even if I did it would go to 17.99 even though I have paid my bills on time and rates are going down.
I asked if they recieved a bailout from Congress and were told that they didn’t. Then I looked it up and found out that they recieved the 25 billion. Called back because I was upset that they lied to me. But still no lower intereste rate for me… Guess I have to not pay my bills to get a break..
Can’t believe they would lie about the bailout. Could believe they wouldn’t help me. I wasn’t asking for a bailout just a lower interest rate.
Thank you very much for your post. Absolutely excellent information and very useful for me. Great done and keep posted. Looking forward to reading more from you.
DON’T BOTHER
IT REALLY DOESN’T MATTER IF YOU REPLY, IT WOULD ONLY BE BULLSHIT.
I HAD A REAL BAD TIME IN 1995 AND ASKED YOUR COMPANY TO TAKE TWO THIRTY DAY LATE PAYMENTS OFF MY CREDIT REPORT SO THAT MY CREDIT WOULD BE BETTER. YOUR COMPANY RESPONDED THAT YOU COULDN’T BECAUSE IT WAS AGAINEST THE LAW. WITHIN A WEEK I RECEIVED A NOTICE IN THE MAIL THAT YOU WERE GOING TO REMOVE ALL DEROGATORY INFORMATION FROM MY CREDIT RECORD SINCE I HAD BEEN SUCH A GOOD CUSTOMER. AT THE SAME TIME Y0UR COMPANY RAISED MY INTEREST TO 29.99 PERCENT WHICH MADE IT IMPOSSIBLE TO MAKE THE PAYMENTS.
SINCE THIS BAILOUT IS BECAUSE OF PROBLEMS YOUR BANK HAS MADE FOR YOUR SELF WILL YOU BE REQUIRED TO PAY 29.99 PERCENT INTEREST ON THE 25 BILLION OF PARTLY MY MONEY YOUR GOING TO BE BORROWING FROM THE GOVERNMENT. IS THERE ANY WONDER THE FEELING THE GENERAL PUBLIC HAS AGAINEST BIG BUSINESS AND BIG GOVERNMENT. YOU GUYS ARE IN BED, I HAVE A HARD TIME AND GET PENALIZED WHICH HAS CONTINUED TO CAUSE ME PROBLEMS TO THIS DAY. YOUR BANK GETS INTO TROUBLE ” MAYBE OR MAYBE NOT” YOU GET HANDED 25 BILLION DOLLARS AS A REWARD. GOD BLESS BIG BUSINESS AND THE FEDERAL GOVERNMENT
JP Morgan Chase is a horrible corporation ruled by greed and we should never be surprised with anything they do.
‘ Secondly, many people here were able to afford their home, but have lost their job, or gotten ill. It’s not a matter of not wanting to pay the mortgage, it’s a matter of they can’t.’
=====
I am not unsympathetic.
However, if these homeowners who became ill did not have long-term disability insurance as part of a comprehensive life insurance package, theirs was never a good realistic overall plan. Too bad.
As for the rest who lost their jobs, there is a window while on ‘Unemployment’. Finding a way to retool and use one’s skills in a slightly different way and possibly start a business, or retrain and switch careers altogether are all possibilities.
Going back to school is available for many also.
my apologies, LL – posted to wrong thread
Patty C 1, October 31, 2008 at 12:10 pm
Lindy Lou, I’m not even going to dignify that with a response except to provide this little gem – which I came across last night.
Remember (Saint) Bartleby (at your service) a/k/a Cro’Magnon’man who did nothing more than try to start ridiculous arguments with anybody and everybody? On the first day, he attacked me and my dead ancestors
for no reason, and when I stood up for them and myself by telling him to get lost, Jill decided it was the perfect opportunity to encourage
someone like him to stick around and become her new BFF.
It’s not I who is feeling ‘threatened. Jill likes to manipulate people – the more fragile the better.
This is what I think about Jill:
She is not married, has no children, is disabled and trapped on Social Security, and lives with an elderly parent. She owns no real property except for an old jalopy – maybe. She has no real social life – just this blog.
She has delusions of hooking up with a hot-shot lawyer who will appreciate her ‘for who she is’ and rescue her…
Garcon, barf bag… s’il vous plait?
…as in, will never happen!
http://jonathanturley.org/2008/09/08/endorsed-by-god-religious-right-defies-irs-on-church-endorsements/
FYI, just because my great grandparents were wealthy, at one time, doesn’t mean that what I have been able to achieve was handed to me.
Quite the opposite.
My WASP grandfather married a French Catholic.
Quite the family scandal in those days…