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.