Is It Good To Be JP?

I have no idea how many times JP has bailed out Wall Street and, sometimes, our country. Plenty. Doesn't seem to have hurt it any, either.

Today's deal might be a good example of why: they're getting more than a 90% discount off an already reduced price--and the feds are backing any losses. Yeah, that's a deal I'd be happy to take. The bankers at JP are no fools. Bear is by no means worthless stock and it's gaining substantial assets in buying the company; assets that may be artificially depressed right now but won't be forever. JP takes the long view.

More power to them, of course. They scoop up a good deal and get great press for doing so--and we deep-pocketed tax payers pick up the slack for losses. That just makes me feel all warm and fuzzy inside.

It's good to be JP--doing well by doing good.

Comments

[Butterflyfish]

Is it really doing well be doing good? Or was that sarcasm?

I see it as more a fire sale. The taxpayers are backing the deal and JP is taking the credit as a front man so no one talks about how there was a run on a bank.

[Butterflyfish]

Is it really doing well be doing good? Or was that sarcasm?

I see it as more a fire sale. The taxpayers are backing the deal and JP is taking the credit as a front man so no one talks about how there was a run on a bank.

[Citations]

On the nose, Butterflyfish, as far as JP taking the credit. And with the markets, getting people to NOT talk about a run on a bank is truly important. In the long run, what JP did is helpful in that regard, but will also bring them enormous rewards down the line. It's win-win for JP, because we're insuring against future losses.