Banks Have No Intention To Use Bailout Money To Make Loans

New York Times:

"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?"

It was Oct. 17, just four days after JPMorgan Chase's chief executive, Jamie Dimon, agreed to take a $25 billion capital injection courtesy of the United States government, when a JPMorgan employee asked that question. It came toward the end of an employee-only conference call that had been largely devoted to meshing certain divisions of JPMorgan with its new acquisition, Washington Mutual.

Read the whole story: New York Times

Comments

[munki]

pre-conditioned before handing taxpayers' money?

[Gatormouth]

You want to give this this bail out a chance of working? Bring back Sherman Anti Trust and break up Goldman Sachs ...and any other company that is too big be allowed to fail. And bring back a stock and security transaction tax of around 1/4% per transaction to pay the people back for the bail out and put an inhibition in against speculation. You don't get to bleed the baby in the bath water as the crooks ride out of town! Whatever you do, don't just give the banks money with no oversight in the hope they will do the right thing. Yeah, I'm one of those "whiners".

[frenchie25]

Profound socio-economic commentary in words and music

http://www.youtube.com/watch?v=JPRfVD5Q0dI

[iambusto]

as they shoudlnt.

If the govt. thinks that the banks are going to lend to deadbeat americans in time of recession, well they are WRONG !!

[McBushMcSame]

The deadbeat banks certainly had no problem taking $700 billion of our money. I never defaulted on a loan, so why are my taxes going towards paying for their screwups under the guise of keeping businesses functioning... while not lending money and cutting credit lines?

This is the airline bailout all over again. You know the one where they claimed they needed billions of dollars to keep fro having to lay people off, took the money and proceeded to fire everyone anyway.

[momofsonofwar]

we pay our bills and own more of the house than the bank and still can't get a small loan for a new roof. Go figure that one out.... Very few are going to get anything from the banks in the future...

[ThePeacemakers]

Americans shouldn't give to deadbeat banks...
Taxpayers pay taxes to support infrasctructure, education, etc - all the things we all use.
People who support that all taxes should go to the few wealthy bankers, brokers and barons must really want the US to become a feudal type of economy. This is where you labor and see no benefit.

Keep it up. Americans will make a run on these suckers.

Meanwhile, they're concentrating the wealth in fewer hands (banks buying up other banks).
Will these super banks then begin lending? Most likely yes - to places like China. The Chinese government has just created a population that has land assets. Those "commies" that parceled out land to their people with strict controls (it could only be for the assigned land users personal use) have now freed up those Chinese to buy, sell, lease their land as they please.

You may weep now.

[DannyEastVillage]

I wouldn't play the "deadbeat" card if I were you.

[ema]

This is totally sickening. The American people should be storming the Treasury.

[000Jade000]

I absolutely agree. These people got us into this mess and if they don't start granting loans, they are going to ruin us. What good does it do the American public to take $25 billion and use it to acquire more banks--or to sit on it "in case" THEY plunge us into a depression? Is the goal only to keep acquiring more banks so that they become "too big to fail" and can outstretch their hand to the gov't for even more "rescue" money?

This isn't right. Unemployment figures are going up and are climbing at a pace that "nobody" imagined. People need jobs to have money to buy cheap crap made overseas and to pay their bills. If Wall Street is only going to hang onto the money they were given, everything is going to collapse.

That money should have been given to the American public.

[Erdgeist]

The bailout plan may have been a good and necessary idea. But as they say, the devil is in the details. In this case, Hank Paulson is one of the minions of the devil, himself, who is taking care of his devilish buddies on Wall Street who will line their pockets with taxpayers money.

Presently, they will have enough money to ride out the long cold winter that will, sadly, leave the rest of America in penury. To be sure, America will write a new chapter in Les Miserables.

[leftLibertarian]

Of course they don't. Did you really think they would?

Another big FU thanks to Pelosi.

[Paul]

Exactly.

Elect Obama and return no incumbant to office.

[LHoney]

If you don't allow a democratic majority, you'll be even more sorry...

[Binckeslaw]

The banks are continuing to acquire huge quantities of cheap or free bailout money from a Treasury Department that is run by bankers! As the bankers sit on the funds both acquired and to be acquired businesses and consumers will suffer. An even more important result is the asset deflation that is being engineered by the banks and Wall Street community. Stocks, bonds, commodities, and hard assets, like real estate, will plummet. State and local governments, unable to pay their obligations because of crashing revenues, will sell off their assets, like highways, mass transit systems, water and sewer systems, bridges, and buildings, to private investment groups partnering with the banks at depressed prices. When the fire sales are done, and we pay user fees to the private investment groups to use the former public assets, we'll see inflation far higher than the Ford/Carter/Reagan era. The coup will be complete.

[ErnestineBass]

Absolutely spot on!

Now that the IMF is "involved", every public utility, road and bridge in this country will soon be privatized, and our economy (not to mention our politics) will resemble that of late 20th century South America when it was ruled by ruthless military despots.

[WolfBlitzer]

Next week or very soon...

the financial markets are going to totally cr'ash...

(dow down more that 1000 points a day)

so they will close them

when they reopen it will be GAME OVER forever.

the next domino is about to fall...

trillions of hedge fund tr'ash...

http://www.telegraph.co.uk/finance/financetopics/financialcrisis/3248965/GLG-chief-Emmanuel-Roman-warns-thousands-of-hedge-funds-on-brink-of-failure-financial-crisis.html

check it out...

there might not even be an "election"...

just wait and see

wolf blitzer for once actually doing his job and being like Paul Revere and warning you of what's coming...

[LHoney]

What did Wolf Blitzer say??

[Norge]

Yes it is shark time for the banks. And the bigest killer sharks and the most agressive are going to do very much crunching in the near weeks and months.

[legalgirl]

It was theft, pure & simple. Period. Just add another charge to the docket for the Bu$hCo. RICO, for example.

[leftLibertarian]

Don't forget Pelosi and Reid's doing.

[ErnestineBass]

Did it ever occur to you that perhaps Pelosi and Reid were acting under duress?

Remember what happened to Tom Da schle when he objected to invading Iraq?

'Nuff said.

[melpol]

The banks will use the bail out gifts for investments only. Lending out money is their least option. Buying out troubled banks is more profitable. The take over of National City is a good example. Consumer loans will be difficult to get for at least 10 years.