One of the big problems with the current financial crisis is that banks aren't giving loans to qualified borrowers anymore. Yadda, yadda, yadda, dreaded 'credit crunch' ensues. But, as some secretive New York Times reporting recently revealed, some banks are less concerned with that and more concerned with buying out all their competitors.
Dudes, seriously?
Joe Nocera, a NYT reporter, listened in on a JP Morgan Chase 'employees only' conference call and gathered this information. Apparently some lower-level employee on the call asked, "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?"
Ballsy question, my friend!
One would think the banks would be all about lending, and getting the 'banking system' train back on track, but on this fateful day the response was more revealing. Basically, the executive responded by saying, pretty clearly, that they would be using that bailout money to get the 'mergers and acquisitions' train back on track. Screw the loans, apparently.
So what does that mean for us all? I guess we should be on the lookout for more big mergers piled onto JP Morgan's already lengthy firm name.
Why don't we just throw all these other guys in there with them? I'd like to introduce the trusted bank of JPMorgan-WaMu-Chovia-LynchOFAmerica-Citi-Bear-Mellon.
