JP Morgan exec says (conference call) bailout $ to be used for acquisitions (not unfreezing lending)

http://www.nytimes.com/2008/10/25/business/25nocera.html?
_r=1&8dpc&oref=slogin


"The JPMorgan executive who was moderating the employee conference
call didn’t hesitate to answer a question that was pretty
politically sensitive given the events of the previous few weeks.

Given the way, that is, that Treasury Secretary Henry M. Paulson Jr.
had decided to use the first installment of the $700 billion bailout
money to recapitalize banks instead of buying up their toxic
securities, which he had then sold to Congress and the American
people as the best and fastest way to get the banks to start making
loans again, and help prevent this recession from getting much, much
worse.

In point of fact, the dirty little secret of the banking industry is
that it has no intention of using the money to make new loans. But
this executive was the first insider who’s been indiscreet enough to
say it within earshot of a journalist."



What is wrong with americans, anyway?

They seem to be willing to eat any amount of s--t.

He instructed banks to use the money to buy other banks instead of loaning it out to customers.

CNBC pundits were very pissed off on Friday when they heard about it.

I mean, how inconvenient would it be if Paulson had to answer for how that $750 billion evaporated?

Henry Paulson was John Ehrlichman’s assistant in 1972 and 1973.

http://en.wikipedia.org/wiki/John_Ehrlichman

http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=389x4243026

There are all sorts of connections between the Nixon administration and the Bush administration. But here’s one I didn’t know about: Hank Paulson was John Ehrlichman’s assistant in 1972 and 1973.

Maybe you have to have lived through Watergate to know what that means.

http://krugman.blogs.nytimes.com/2008/10/15/nixonland/#comment-86377

This is why we cannot allow the criminals in the Bush administration to avoid answering for their crimes in the courts. This criminal Bush administration is just a recycling of the criminal Nixon and Reagan administrations. Name after name recurs. These characters have no qualifications for their jobs other than that they are greedy, brazen, unscrupulous and discrete.

hey, all you folks hissing the stupid 20 year old who (in point of fact) has ended up harming no one but herself -

can you spare some for the sobs who've actually been harming people?

And right now Ashley Todd is the focus.

PNC bank in Cincinnati acquired National City, another local bank on Friday. They paid something like 5.2 billion and reported that they are receiving 7.5 billion from the Bailout fund.

I kinda like that math so I'm going into PNC on Monday. I want to buy a 52,000 car and I'm hoping that they're just going to give me 75,000 to do it. Seems fair, eh?

gave Paulson the money.