Category Archives: Banking

J.P. Morgan Forced To Take Bailout Money?

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Former Senator Barney Frank was on CNBC today talking about Dodd-Frank act, but that’s not what interested me today. What interested me today was that Barney Frank said that both J.P. Morgan and Wells Fargo (via Wachovia) were forced to take the bailout money.

Former Senator Frank said that both banks did not want to take bailout money because they (the banks) said that they didn’t need it and that they were solvent.  Pretty much they were forced to take that money for the betterment of the country, and the world.  So those banks that realized the risk involved with CDOs and the whole sack of “you know what” back then did their part in helping solve the financial systemic crisis that the world was experiencing at the time.

J.P. Morgan then helped the world by purchasing the insolvent firms Washington Mutual and the Bears Stern assets.  So J.P. Morgan was wearing the big “S” on their chest, and what happens, the government decided to go after J.P. Morgan shareholders in the form of lawsuits because of the Bears Stern (and maybe WM) previous risky moves that J.P. Morgan saved.  And that’s what’s confusing me…  It’s kind of like a dog biting the hand that feels it no?  Or maybe you save someone from a burning building and they sue you because some other guy started the fire but you put it out.

I hear the Media and the “one percenters” complain about J.P. Morgan (and indirectly Jaime Dimon) taking the bailout (which they were forced to do), and then questioning Jaime Dimon, who by all accounts President Obama and Barney Frank support.

This is why I think that we live in Bizarro world sometimes.

I think there is so much misinformation and added confusion by large media channels and political advisors, not to mention comedy shows like John Stewart’s show, that the truth and reality of the such issues get lost and twisted, at least in my opinion.

I think that when sources like Barney Frank (a Democrat), come out and support a business (JP Morgan), then we are probably getting a pretty good picture of the truth on what happened…

That’s my two cents on why neither Jaime Dimon or the business J.P. Morgan should have any lawsuit brought against them for saving us.

Bests,

Don

 

Senate Versus Jamie Dimon

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I’m on vacation, but I stumbled upon the senate hearing with Jamie Dimon speaking, and I have to say I’m impressed.

While I’m not that impressed with the senate, Jamie Dimon was a superstar.  It’s kind of like seeing a debate contest between a third grader (some of the senators) and a renown public speaker.

I was especially amazed with a senator from Ohio.  This particular senator opened his questioning with a statement that he wanted Jamie Dimon to just answer “Yes or No” to his questions.  My thought is how do you learn anything with “Yes or No” answers.  To me this seemed like a tactic to make the senator look good to his voters.  I on the other hand thought he looked foolish.  The Ohio senator ended by saying that the bank is too big to manager in his opinion.  My thought is what basis does he have to make such a statement?  Other foreign banks have no restrictions, so if our “too big” banks are broken up, how would we compete with smart foreign banks that don’t have such restrictions?

Is it me, or does it seem like we are giving our advantages away to other countries?

I think that Jamie Dimon is one of the best CEO in the United States and we’re very lucky to have him in our country.  I actually came away from the meeting with great respect for the man.  It’s obvious that he’s cares about American and truly wants things to be optimal.

I think one of the most incredible moments in the hearing? was when Jamie Dimon started listed how his company and other banks have made financial transactions cheaper and more liquid.  It seems like nobody thinks of the great things that the banks do, just that they are crooks.  I’m against the gain when I think that people like Jamie Dimon are great americans and help the country prosper!  Where do we think that small startup businesses get their money from to start anyway.

Senate vs Dimon, winner Dimon!

Bests,

MR