JPMorgan Takes over Finances for Kentucky State Government [View All]

[The Straight Story]

JPMorgan Takes over Finances for Kentucky State Government

The bank that played a major role inflating the house bubble, and consequently helped cripple Wall Street in 2008, has become the state bank of Kentucky.

Name the financial transaction and JPMorgan Chase is now in charge of it: deposits, payroll checks, disbursing federal monies and more. Kentucky’s state government handles $12 billion to $15 billion a year, and JPMorgan will have its fingers on all of it.

In return the bank will be paid $1.3 million in state fees.

Kentuckians can only hope their government’s partnering with JPMorgan Chase won’t backfire like it did in Alabama, where a complicated bond-financing scheme crafted by the bank for a new sewer treatment plant crippled Jefferson County and left it teetering on bankruptcy.

http://www.allgov.com/Controversies/ViewNews/JPMorgan_Takes_over_Finances_for_Kentucky_State_Government_110806