Winehole23
03-22-2023, 03:18 AM
No comment,CC?
Who were you taking marching orders from?
I vividly remember the Fed orchestrating the shotgun weddings between JP Morgan and Bear Stearns and Washington Mutual to help "avoid the meltdown of the financial system". I'm not saying that JP Morgan wasn't eyeball deep in selling bad paper themselves, but holding them responsible now for the bad deeds done at Bear Stearns and WAMU prior to the mergers is pretty cheesy.
Chase got to buy Bear Stearns with $29 billion in Fed guarantees, with the state setting up a special bailout facility, Maiden Lane, to unwind all of the phony-baloney loans created through Bear's Ponzi-mortgage-mechanism described above. So Chase got to acquire one of the world's biggest investment banks for pennies on the dollar, and then got the Fed to buy up all the toxic parts of the bank's portfolio, essentially making the public the involuntary customer of Bear's criminal inventory.
Later on, Chase took $25 billion in TARP money, bought Washington Mutual and its $33 billion in assets for the fire-sale price of $1.9 billion, and then repeated the Bear scenario, getting another Maiden Lane facility to take on the deadliest parts of Washington Mutual's portfolio (including, for instance, a pool of mortgages in which 94 percent of the loans had limited documentation).
Incidentally, the notion that Chase was somehow dragged kicking and screaming by the government and forced to buy these two massive companies essentially for free is almost as laughable and ridiculous as the oft-cited explanation for the financial crisis, that the government forced banks to lend to the poor.
Chase, as has been reported by multiple outlets, had already tried on its own to buy both companies before the state arranged its infamous shotgun weddings. Only after both firms collapsed, the economy was in crisis, and Chase was able to get the Fed to eat the toxic portfolios of both companies did these already-longed-for acquisitions take place.
http://www.rollingstone.com/politics/blogs/taibblog/nobody-should-shed-a-tear-for-jp-morgan-chase-20131025
Who were you taking marching orders from?
I vividly remember the Fed orchestrating the shotgun weddings between JP Morgan and Bear Stearns and Washington Mutual to help "avoid the meltdown of the financial system". I'm not saying that JP Morgan wasn't eyeball deep in selling bad paper themselves, but holding them responsible now for the bad deeds done at Bear Stearns and WAMU prior to the mergers is pretty cheesy.
Chase got to buy Bear Stearns with $29 billion in Fed guarantees, with the state setting up a special bailout facility, Maiden Lane, to unwind all of the phony-baloney loans created through Bear's Ponzi-mortgage-mechanism described above. So Chase got to acquire one of the world's biggest investment banks for pennies on the dollar, and then got the Fed to buy up all the toxic parts of the bank's portfolio, essentially making the public the involuntary customer of Bear's criminal inventory.
Later on, Chase took $25 billion in TARP money, bought Washington Mutual and its $33 billion in assets for the fire-sale price of $1.9 billion, and then repeated the Bear scenario, getting another Maiden Lane facility to take on the deadliest parts of Washington Mutual's portfolio (including, for instance, a pool of mortgages in which 94 percent of the loans had limited documentation).
Incidentally, the notion that Chase was somehow dragged kicking and screaming by the government and forced to buy these two massive companies essentially for free is almost as laughable and ridiculous as the oft-cited explanation for the financial crisis, that the government forced banks to lend to the poor.
Chase, as has been reported by multiple outlets, had already tried on its own to buy both companies before the state arranged its infamous shotgun weddings. Only after both firms collapsed, the economy was in crisis, and Chase was able to get the Fed to eat the toxic portfolios of both companies did these already-longed-for acquisitions take place.
http://www.rollingstone.com/politics/blogs/taibblog/nobody-should-shed-a-tear-for-jp-morgan-chase-20131025