drieuxster (drieuxster) wrote,

Should banks speculate with bail out money?

“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?”
“Twenty-five billion dollars is obviously going to help the folks who are struggling more than Chase,” he began. “What we do think it will help us do is perhaps be a little bit more active on the acquisition side or opportunistic side for some banks who are still struggling. And I would not assume that we are done on the acquisition side just because of the Washington Mutual and Bear Stearns mergers. I think there are going to be some great opportunities for us to grow in this environment, and I think we have an opportunity to use that $25 billion in that way and obviously depending on whether recession turns into depression or what happens in the future, you know, we have that as a backstop.”

[ cf So When Will Banks Give Loans? ]
Read the rest of the article, and you can be somewhat more amused.

But basically it looks like there will be more loan relief when the US Government runs out of money.

Or someone in the US Government opts to outlaw crime.

Or more impressively, when the US Government learns that bail out money needs the loving care and support of ousting the failed C-Level Players, seats on the Board, and control of the new steering committee to find a CEO who will be willing to work for share holder value...

Oh yes, that would of course mean more regulatory oversight that really works, and not merely the sort of failure we have recieved from the Paulson/Bernanke Road Show. Which I really think should get them a job in any circus...
Tags: economics, election, war

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