Truemors
is reporting from
Member
NP Rank:
NP Rank:
So When Will Banks Give Loans? (Sen. Dodd Warns Banks of Revolution and Hell to Pay)
Share:
by Erik Larson | October 25, 2008 at 09:26 pm
183 views | 14 Recommendations | 5 comments
The overgrown cancerous blood-sucking parasites, I mean the Banks of Corporate America, aren't going to be using the $700 billion bailout to extend credit to American businesses and homeowners going under water; they'll be using it for a merger and acquisitions spree, while smaller companies are available at distress-sale prices.
Meanwhile, Banking Committee Chair Chris Dodd blusters about "revolution", and having the banks come back to Capitol Hill in a couple weeks for "hell to pay", if they don't start lending the money to the taxpayers, that they were lent by the taxpayers.
“Twenty-five billion dollars is obviously going to help the folks who are struggling more than Chase,” [JP Morgan Chase's CEO] began. “What we do think it will help us do is perhaps be a little bit more active on the acquisition side or opportunistic side for some banks who are still struggling. And I would not assume that we are done on the acquisition side just because of the Washington Mutual and Bear Stearns mergers. I think there are going to be some great opportunities for us to grow in this environment, and I think we have an opportunity to use that $25 billion in that way and obviously depending on whether recession turns into depression or what happens in the future, you know, we have that as a backstop.”
Read that answer as many times as you want — you are not going to find a single word in there about making loans to help the American economy. On the contrary: at another point in the conference call, the same executive (who I’m not naming because he didn’t know I would be listening in) explained that “loan dollars are down significantly.” He added, “We would think that loan volume will continue to go down as we continue to tighten credit to fully reflect the high cost of pricing on the loan side.” In other words JPMorgan has no intention of turning on the lending spigot.
------
Late Thursday afternoon, I caught up with Senator Dodd, and asked him what he was going to do if the loan situation didn’t improve. “All I can tell you is that we are going to have the bankers up here, probably in another couple of weeks and we are going to have a very blunt conversation,” he replied.
He continued: “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.”
What is NowPublic?
NowPublic lets people work together to cover news events around the world.
Most RecentMost Recommended Comments (5)
at 21:45 on October 25th, 2008
Erik Larson, sigh, can't say I'm surprised.
at 00:13 on October 26th, 2008
Erik Larson, I like this story. It's good stuff. Yeah right ! Chris Dodd really thinks he knows?
The banks are thinking this Eric....."Hey we got our money from the bad loans the taxpayers refused to make good on. We gave them a chance.....they blew it.....by not paying their loans."...."And now they are trying to make it seem like it was our fault for lending them the money?" " See if we do that again! " Not again....in fact Erik they are going to hoard it....and thank the Republicans for gettting it for them. Now that Obama is appearing to be the winner in the Change Campaign.....looks like the change the Banks are going to give us is just that....nothing but small change... They will keep the noose tight for the entire 4 years, and open the spicket for the next round at the stump in 2012...hailing Republicans for bringing jobs to America after Obama's failure....That is what will happen.. And Obama? What can he do? If I was him......I would repeal the 700 billion and force the banks to pay it back to the treasury. Any way you look at this......the money I don't see coming to help or affect the ordinary guy... tsk ....I say boycott WallStreet.....
Rev. Jermano
at 09:21 on October 26th, 2008
thanks for the good stuff guys, yeah, Amy, it was to be expected- and dj, you're right about the hoarding- George Washington seems to have stopped cross-posting here, but he's still prolifically producing at his blog, including this commentary on that subject:
Banks ADMIT They'll Keep on Hoarding Cash
interesting point about what banks are likely to do to Obama- they'll manipulate any President. Congress could overturn the Federal Reserve system with a new law- the money power works really hard to divide and block the People power, but when the sleeping giant is aroused by being downsized, foreclosed, 401K slashed, gas over $3, the politicians need to start throwing bones, or they may get thrown out of office; if public opinion is turning against the Republocrat system, all the vote-stealing machines in the USA won't be able to smear legitimacy lipstick on another stolen election.
at 12:11 on October 26th, 2008
Erik Larson, I like this story. Up to year to date 2008, US banks, brokers, hedgefunds stole 2.500 bn Euros / $ 3.500 bn from Europe by channeling sub-prime based fake securities through contracted british banks in the Euro zone. First law cases against german banks forced them to pay back sold Lehman securites. A twin group of New York laywers is preparing a class action suit against American banks, brokers to pay back European false securites sold in the final days of the money scam.
at 22:38 on October 26th, 2008
thanks for the update Solarlife- what a disaster; the system could have been managed responsibly and wasn't; now, those responsible for the mess, and many that may have committed serious crimes inflating the bubble and undermining it, are going to hide behind lawyers and legal arguments, and the victims will be tied up in court, piling multi-millions in legal fees on top of the evaporated wealth.