JPMorgan gets paid to borrow $271 billion from the government

[Joanne98]

We know that JPMorgan is not substantially increasing lending anytime soon. And we also know that banks are recapitalizing courtesy of a steep yield curve and near zero rates, what I would call free money. What I didn’t know is how free these funds truly were. An investor friend pointed out something curious buried deep in JPMorgan Chase’s financial report from Q1 2010, namely that they were effectively paid five basis points to borrow money from the government.

Here’s a close-up of the numbers in question.

http://www.nakedcapitalism.com/2010/04/jpmorgan-gets-paid-to-borrow-271-billion-from-the-government.html

[Captain Hilts]

1. I was told JPMChase actually didn't even need the money, but the Govt. wanted to avoid Citi...

looking incompetent or corrupt, so they spread the money - and the blame - out to a couple of banks.

[lonestarnot]

2. What a piss poor motivation on gov.'s part!

[Captain Hilts]

3. Clearly, they were covering for their friends at Goldman and Citi. nt

[lonestarnot]

4. My daily puke for the day! Thanks.

[upi402]

5. When are Teabaggers going to show up at the banks?

These fools attack their benefactors and refuse to overturn the moneychangers' tables.

If you want to protest big government... go to the banks. Looks like they run the show.

[Captain Hilts]

6. DING DING DING DING!!!! We have a winnah!

[jtuck004]

7. Maybe their CEO will tell the graduates at Syracuse how to get away with this...

http://abcnews.go.com/WN/syracuse-university-students-protest-jpmorgan-chase-ceo-jamie/story?id=10365948

Yup, up there as a role model.

[pa28]

8. Tarp was really the tip of the iceberg.

The fed and government recapitalized in a variety of ways using public equity and there's no accounting for it of course. We'll never see it back.

Programs like the reverse-repo which I'm sure the fed will be mounting a second offensive on in coming months basically pay financial institutions to temporarily hold the worthless securities they passed off on the fed for a guaranteed return. It's just transferring equity on all of our dollars back into the banks to recapitalize them back to health.

The bill is huge and someday it will be paid, unfortunately it's just a little too arcane to explain in 30 seconds on CNN. When the next financial shock comes it'll be just so much easier to blame "welfare cheats and the out of control socialists in Washington".