The Capital for 10/25/08: NY Times Joe Nocera Reports Paulson Possibly Playing Us Again

Utterly shameful stuff that the New York Times Joe Nocera reported yesterday in regards to what is actually happening with the bailout money that the television media isn't covering. But that's typical of our corrupt television, Republican owned media (and General Electric isn't any better, no matter if they put Olbermann and Maddow in to make the "left" happy).

Back to this great, but very alarmingly, article from Nocera. It shows how Paulson is being slick King Henry again, and benefitting those who don't even need the money on Fall Street:

“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?”

It was Oct. 17, just four days after JPMorgan Chase’s chief executive, Jamie Dimon, agreed to take a $25 billion capital injection courtesy of the United States government, when a JPMorgan employee asked that question. It came toward the end of an employee-only conference call that had been largely devoted to meshing certain divisions of JPMorgan with its new acquisition, Washington Mutual.

Which, of course, it also got thanks to the federal government. Christmas came early at JPMorgan Chase.

Later in the article, it is revealed to those who don't know the situation of JP Morgan that their company did not actually need this bailout money because of its success as its competitors went by the wayside.

Of all the banking executives in that room with Mr. Paulson a few weeks ago, none needed the government’s money less than Mr. Dimon. A company spokesman told me, “We accepted the money for the good of the entire financial system.” He added that JP Morgan would use the money “to do good for customers and shareholders. We are disciplined to try to make loans that people can repay.”

So if they don't need the money, then who needs it, and why aren't they (like Citigroup) given it? Nocera asks that same question, but in even more detail than me

There are plenty of small and medium-size businesses that are choking because they have no access to capital — and are perfectly capable of repaying the money. How about a loan program for them, Mr. Dimon?

Nocera closes out with a discussion with Chris Dodd. The Connecticut Senator obviously was not happy at all about this:

“If it turns out that they are hoarding, you’ll have a revolution on your hands. People will be so livid and furious that their tax money is going to line their pockets instead of doing the right thing. There will be hell to pay.”

There surely will. And I think both Barack Obama and Joe Biden will really be just as angry about this as well.