4 ms·

>when the entire industry comes to the government and says "unless you bail us out right now our entire industry will collapse That's an interesting interpreta

>when the entire industry comes to the government and says "unless you bail us out right now our entire industry will collapse That's an interesting interpretation of the events. In fact, there were institutions that were coerced by the government to participate in the bailout. Much of the derivatives betting was zero-sum, and done amongst the banks. The winners of those bets would have been more than happy to watch their competitors fail (fire sale!).

haberman 11y ago
Institutions had to be coerced into letting the government buy their toxic assets through TARP? I would love to see a reference on that.
- sokoloff 11y ago
  Claim by Jamie Dimon that they didn't want TARP funds but were pressured to take it: http://cnsnews.com/news/article/jpmorgan-chase-ceo-bank-took-tarp-because-we-were-asked-treasury-secretary http://cnsnews.com/news/article/jpmorgan-chase-ceo-bank-took...
  - haberman 11y ago
    So that speaks very highly of JPMorgan, and none of my criticism then applies to them. It's all the banks that were going to fail without TARP that I am criticizing.
- slavik81 11y ago
  > June 11, 2009 | SINCE the economy hit an iceberg in October, America's biggest banks have felt a bit like shipwreck survivors: required to wear lifebelts provided by the government, despite complaints from some that they could have kept afloat on their own. http://www.economist.com/node/13832261 http://www.economist.com/node/13832261 > April 16, 2009 | THE WORST nightmare of many bankers, natural capitalists, is being under the direct control of the government. So it's no surprise that American banks want to throw off the yoke of government meddling and pay back any accepted TARP money as soon as possible. Predictably, Goldman Sachs is leading the charge. http://www.economist.com/blogs/freeexchange/2009/04/i_dont_want_your_tarp http://www.economist.com/blogs/freeexchange/2009/04/i_dont_w...

haberman 11y ago

Institutions had to be coerced into letting the government buy their toxic assets through TARP? I would love to see a reference on that.

sokoloff 11y ago
Claim by Jamie Dimon that they didn't want TARP funds but were pressured to take it: http://cnsnews.com/news/article/jpmorgan-chase-ceo-bank-took-tarp-because-we-were-asked-treasury-secretary http://cnsnews.com/news/article/jpmorgan-chase-ceo-bank-took...
- haberman 11y ago
  So that speaks very highly of JPMorgan, and none of my criticism then applies to them. It's all the banks that were going to fail without TARP that I am criticizing.
slavik81 11y ago
> June 11, 2009 | SINCE the economy hit an iceberg in October, America's biggest banks have felt a bit like shipwreck survivors: required to wear lifebelts provided by the government, despite complaints from some that they could have kept afloat on their own. http://www.economist.com/node/13832261 http://www.economist.com/node/13832261 > April 16, 2009 | THE WORST nightmare of many bankers, natural capitalists, is being under the direct control of the government. So it's no surprise that American banks want to throw off the yoke of government meddling and pay back any accepted TARP money as soon as possible. Predictably, Goldman Sachs is leading the charge. http://www.economist.com/blogs/freeexchange/2009/04/i_dont_want_your_tarp http://www.economist.com/blogs/freeexchange/2009/04/i_dont_w...